$AMD bulls cash in their chips

Advanced Micro Devices (AMD) shares keep grinding higher, delivering more profits to bullish option traders.

On Nov. 5, Market Rebellion’s Unusual Activity Service detected the purchase of 3,000 February $40 calls in one print for $2.45 with shares at $36.82. Volume was well above the strike’s previous open interest of 2,531 contracts, showing that this was a new positions.

Those calls have traded up to $17.00 so far today, nearly 7 times their purchase price. The stock rose 54.81% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the third winning trade in the name to be posted on Market Rebellion in the past month.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

AMD is currently at session highs trading up on the day by 3.95% to $57.50. The semiconductor developer’s price target was raised to $66 from $63 at RBC Capital on Friday.