AMD OTM Call Options: Bulls on Parade

Alright, listen up Rebels! We’ve got some juicy Unusual Options Activity (UOA) in AMD today, and it’s already gaining steam. This baby hit around 11:30 AM, and within just 30 minutes (at the time of writing), it’s on the rise. If you want to see these alerts when they happen, then you’ll have to subscribe to UOA (try a month at the bottom of this article).

Now, the reason behind this uptick could be the upcoming FOMC (June 14th), where investors are hoping for a breather from those relentless rate hikes. (There’s a 66.7% chance we’ll finally see a pause after ten in a row). 

Or maybe it’s just the dip-buyers jumping in after yesterday’s brutal Nasdaq beatdown (the worst day for tech since April). But who cares about the why? We’re here for the momentum — and this UOA has it in spades.

The first trade, $131 strike calls, expire on June 16th. The second, $136 calls, expires on June 30th. So we’ve got some time, but not a ton. 

Now, let’s talk numbers. This UOA trade cost the buyer a whopping $1.268 million dollars — $512,000 for the June 16th trade and $756,000 for the June 30th trade. Through analyzing position sizing, volume, and timing, and it’s crystal clear that both trades were placed by the same big player. Someone with deep pockets, my friends.

But hey, let’s not forget our golden rules of engagement here:

Rule number one, AJ Monte’s 1% Rule: Don’t go all-in on a single position. Try to keep it within 1% of your account value. We don’t want to risk everything on one play, now do we?

And rule number two, Jon’s risk management rule of thumb: If your position doubles, take those sweet profits or roll the trade. And if it gets cut in half, well, take what’s left and move on to the next opportunity.

Remember, my fellow optionistas, always stay cautious out there. The market can be a wild ride, but with the right moves, we’ll conquer it together. 

Good luck, and may the tendies rain upon us all.

PS: Need more examples of UOA in action? Check out Monday’s insanely well-timed OTM Coinbase puts, bought 24 hours before the SEC filed charges against the crypto exchange. These were worth nearly 20X on Tuesday morning.