$AMD bulls chip away at more gains

Bullish option traders who opened upside call positions in Advanced Micro Devices (AMD) only three sessions ago are making big gains today as shares climb to new highs.

On Nov. 30, Market Rebellion’s Unusual Activity Service detected the purchase of 4,300 Weekly $92 calls expiring this Friday for $0.53 to $1.27 with shares at $87.32. Volume was certainly above the strike’s previous open interest of 2,697 contracts, showing that this was a new position.

Market Rebellion co-founder Pete Najarian noted other upside option activity on CNBC’s “Halftime Report” that day.

Those calls traded have traded for as much as $4.74 today, at least 4 times their purchase prices. The stock rose 10.1% in the same time frame, illustrating the kind of leverage that can be achieved with options.

This marks the second outperforming trade posted on Market Rebellion this week in the name.

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 was last up by 2.03% to $94.51, setting new highs this session.