AMD) has been one of the hottest stocks in the market due to its exposure to gaming and the repeated stumbles of top competitor Intel Corporation (NASDAQ: INTC).
On Tuesday, large option traders were making some huge bets that AMD’s 90% rally off the March lows is far from over.
Benzinga Pro subscribers received 28 option alerts related to unusually large trades of AMD options. Here are a handful of the largest:” data-reactid=”21″>The Trades: On Tuesday, Benzinga Pro subscribers received 28 option alerts related to unusually large trades of AMD options. Here are a handful of the largest:
- At 9:39 a.m., a trader bought 334 AMD call options with a $85 strike price expiring on March 19, 2021 near the ask price at $12.68. The trade represented a $423,512 bullish bet.
- At 10:39 a.m., a trader bought 500 AMD call options with a $55 strike price expiring on Oct. 16 at the ask price of $26. The trade represented a $1.3 million bullish bet.
- At 10:47 a.m., a trader sold 373 AMD put options with an $80 strike price expiring on Jan. 15, 2021 near the bid price at $12.201. The trade represented a $455,097 bullish bet.
- At 11:47 a.m., a trader bought 711 AMD call options with an $80 strike price expiring on Oct. 16 at the ask price of $7.39. The trade represented a $525,429 bullish bet.
Of the 28 total large AMD option trades on Tuesday morning, 21 were calls purchased at or near the ask or puts sold at or near the bid, trades typically seen as bullish. Seven trades represented calls sold at or near the bid or puts purchased at or near the ask, trades typically seen as bearish. The five largest trades of the morning were all bullish in nature.
Many of these large options traders are wealthy individuals or institutions who may have unique information or theses related to the underlying stock.
Unfortunately, stock traders often use the options market to hedge against their larger stock positions, and there’s no surefire way to determine if an options trade is a standalone position or a hedge. In this case, given the relatively large sizes of the largest option trades, they could certainly represent institutional hedging.
Buy rating for AMD and raised its price target from $95 to $135, suggesting another 69% upside from current levels.” data-reactid=”36″>On Monday, Jefferies reiterated its Buy rating for AMD and raised its price target from $95 to $135, suggesting another 69% upside from current levels.
“As it does, we think that the bull case for AMD, which is based largely on AMD capturing 30% share from INTC over the next 2-to-3 years, will morph to a 50% market share bull case 4-to-5 years out,” analyst Mark Lipacis said.
AMD Chart by TradingView new TradingView.widget( { "width": 680, "height": 423, "symbol": "NASDAQ:AMD", "interval": "D", "timezone": "Etc/UTC", "theme": "light", "style": "1", "locale": "en", "toolbar_bg": "#f1f3f6", "enable_publishing": false, "allow_symbol_change": true, "container_id": "tradingview_940f9" } );” data-reactid=”38″> AMD Chart by TradingView new TradingView.widget( { “width”: 680, “height”: 423, “symbol”: “NASDAQ:AMD”, “interval”: “D”, “timezone”: “Etc/UTC”, “theme”: “light”, “style”: “1”, “locale”: “en”, “toolbar_bg”: “#f1f3f6”, “enable_publishing”: false, “allow_symbol_change”: true, “container_id”: “tradingview_940f9” } );
UPS Option Trader Bets M The Stock’s Huge Rally Isn’t Over ” data-reactid=”41″>UPS Option Trader Bets M The Stock’s Huge Rally Isn’t Over
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