$AMD call prices rally

$AMD call prices rally

by

Bullish option traders who opened upside call positions in Advanced Micro Devices (AMD) on Monday are making big gains today.

On May 22Market Rebellion’s Unusual Activity Service found that 17,000 Weekly $110 calls, expiring today, May 26,, were bought for $0.52 to $1.32 above open interest of 7,907 contracts with shares at $104.20.

Those calls have traded traded for as much as $17.00 this session, a 1,187.88% return, while the stock rose 21.9% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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 on the day by 4.34% to $125.57.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!
Start Your Day the Smart Money Way

Real-time Analysis

Interactive Chat Q&A
Professional Tactics