Options Bulls Keep Targeting This Semiconductor Stock

Year-to-date, AMD sports an over 52% lead

Digital Content Manager
Dec 16, 2021 at 12:05 PM
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Chipmaker Advanced Micro Devices, Inc. (NASDAQ:AMD) is down 4.5% at $139.81 at last check. Though a reason for this negative price action is not immediately clear, it may be related to the company's planned acquisition of fellow microchip concern Xilinx (XLNX). Investors are awaiting on a decision from China regarding the potential antitrust parameters of the deal, while the Biden administration evaluates implementing new restrictions on the exportation of chip components. 

The security has been falling from its Nov. 30, all-time high of $164.46 in recent weeks. Shares bounced off a floor at the $130 mark earlier this month, though, with support from the 50-day moving average. Year-to-date, Advanced Micro Devices stock has added 52.2%. 

AMD 50 Day

What's more, the equity just popped up on Schaeffer's Senior Quantitative Analyst Rocky White's list of names that have attracted the highest weekly options volume over the last two weeks. Specifically, 3,729,199 weekly calls and 2,060,154 weekly puts have crossed the tape. The most popular contract during that two-week period was the December 140-strike call.

 MAO 1216   

The security could benefit from short-covering. Though short interest is down 5.1% in the most recent reporting period, the 71.64 million shares sold short still make up 6% of the stock's available float. 

It is also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) sits at 87 out of 100. This means AMD has exceeded options traders' volatility expectations in the past year.


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