Semiconductor Stock in Options Bulls' Good Graces

Calls have been unusually popular in the options pits

Digital Content Manager
Jun 6, 2022 at 2:11 PM
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Advanced Micro Devices, Inc. (NASDAQ:AMD) stock is down 0.6% to trade at $105.64 this afternoon. The semiconductor concern recently staged a bounce off its May 12, roughly one-year low of $83.27, and last week settled above its 80-day moving average for the first time since January. AMD is today pacing for its third-straight close above this trendline, and earlier surged to its highest trading level in about two months, though it remains down roughly 27% in 2022.

 

AMD 80 Day

Despite the volatility it's faced over the last few months, Advanced Micro Devices stock is on Schaeffer's Senior Quantitative Analyst Rocky White's list of names that have attracted the highest weekly options volume within the past two weeks. According to this data, 3,970,827 calls and 2,695,648 puts were exchanged in this two-week time period. The 5/27 100-strike call stood out as the most popular contract by far, followed by the 102-strike call in the same weekly series.

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This penchant for calls is nothing new. This is per the security's 50-day call/put volume ratio of 1.82 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that ranks in the 97th percentile of its annual range, which implies a healthier-than usual appetite for long calls in the last 10 weeks.

These options traders are in luck, too, as now seems like an ideal time to weigh in on AMD's next move higher. Advanced Micro Devices stock has usually outperformed volatility expectations, per its Schaeffer's Volatility Scorecard (SVS) ranking of 95 out of 100.

 

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