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Unusual Options Volume on AMD After Ryzen Announcement

Option bulls are buying weekly AMD calls

May 28, 2019 at 3:00 PM
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As we highlighted in our Midday Market Check newsletter, semiconductor stock Advanced Micro Devices, Inc. (NASDAQ:AMD) is surging today, last seen up 12.1% at $29.63, as investors react bullishly to the company's new line of Ryzen CPUs. Call volume is running in the 96th annual percentile thanks to heavy attention for the weekly 5/31 series, where data points to buy-to-open activity at all strikes 28 through 30. The 30-strike call is also popular in the weekly 6/7 series.

This puts AMD on pace for its highest close since early October. It's been seeing support from the 50-day moving average, and now sports a year-to-date lead north of 60%.

Also seeing unusual options trading is Uber Technologies Inc (NYSE:UBER), where the weekly 5/31 40-strike put is leading the way with almost 8,000 contracts traded. New positions have been opened near the ask price, indicating buy-to-open action is taking place. UBER stock has only closed below $40 twice since going public earlier this month, and this price point served as a floor back on May 23. The shares were last seen trading down 1.3%, at $40.97.

Finally, Zynga Inc (NASDAQ:ZNGA) options are hot after the company announced it would sell and lease back its San Francisco headquarters in a $600 million deal. There's heavy activity at the September 6 call, where it looks likely traders are closing out of positions now that ZNGA stock is trading at $6.18, up 2% on the day.

 

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