AMD (AMD) Offering Possible 71.82% Return Over the Next 15 Calendar Days

AMD's most recent trend suggests a bearish bias. One trading opportunity on AMD is a Bear Call Spread using a strike $85.00 short call and a strike $90.00 long call offers a potential 71.82% return on risk over the next 15 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $85.00 by expiration. The full premium credit of $2.09 would be kept by the premium seller. The risk of $2.91 would be incurred if the stock rose above the $90.00 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for AMD is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for AMD is bearish.

The RSI indicator is at 37.31 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for AMD

A little ‘commodity explosion’ is to be expected: Sarge986 LLC President
Tue, 02 Mar 2021 20:13:04 +0000
Stephen Guilfoyle, Founder and President of Sarge986 LLC, joins Yahoo Finance’s Alexis Christoforous to discuss strong U.S. reports on manufacturing data.

1 Reason Why You Should Buy the Dip in AMD Stock
Tue, 02 Mar 2021 14:10:00 +0000
Advanced Micro Devices (NASDAQ: AMD) stock has stumbled out of the gate in 2021. The company has been dominating Intel in the CPU market and is sitting on favorable trends in the GPU (graphics processing unit) space where demand is substantially outpacing supply. The arrival of a new generation of gaming consoles from Microsoft (NASDAQ: MSFT) and Sony (NYSE: SNE) is also turning out to be a major tailwind for the company — one that could help the chipmaker exceed its own expectations as it supplies chips for both devices.

5 Beaten-Up Tech Stocks That Could Be Buys Right Now
Mon, 01 Mar 2021 21:46:00 +0000
Amazon.com, Nvidia, and Netflix made a recent screen about growth stocks that could perform well even if interest rates spike.

Is AMD Stock A Buy After Chipmaker's Fourth-Quarter Earnings Report?
Mon, 01 Mar 2021 12:45:11 +0000
Advanced Micro Devices stock is trading near record-high territory on expectations for continued market share gains in processors for PCs and servers. Is AMD stock a buy right now?

Understanding Advanced Micro Devices's Unusual Options Activity
Fri, 26 Feb 2021 14:38:25 +0000
Advanced Micro Devices (NASDAQ:AMD) shares experienced unusual options activity on Friday. The stock price moved down to $82.42 following the option alert. Sentiment: BULLISH Option Type: SWEEP Trade Type: PUT Expiration Date: 2021-03-05 Strike Price: $85.00 Volume: 172 Open Interest: 5981 Three Ways Options Activity Is ‘Unusual' One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset. “Out of the money” contracts are unusual because they are purchased with a strike price far from the underlying asset price. “Out of the money” occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. Bullish And Bearish Sentiments Options are “bullish” when a call is purchased at/near ask price or a put is sold at/near bid price. Options are “bearish” when a call is sold at/near bid price or a put is bought at/near ask price. These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock. Using These Options Strategies Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account. For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts See more from BenzingaClick here for options trades from Benzinga10 Information Technology Stocks With Unusual Options Alerts In Today's Session10 Information Technology Stocks With Unusual Options Alerts In Today's Session© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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