Bulls keep stacking their chips in $AMD

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

On Jul. 22, Market Rebellion’s Unusual Activity Service detected the purchase of 4,500 August $59 calls for $3.75 to $4.55 with shares at $58.37. Volume was certainly above the strike’s previous open interest of 299 contracts, showing that this was a new position.

Those calls traded have traded for as much as $10.05 so far this morning, at least 2 times their purchase prices. The stock rose 15.73% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name to be posted on Market Rebellion in as many sessions.

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 12.92% to $67.26, just off a new high of $67.57 made earlier in the session. The semiconductor developer has risen sharply today on the back of Intel’s (INTC) quarterly earnings report and will itself report its Q2 earnings on Jul. 28 after the close.