AMD closed at US$514.39, up 6.50% last Friday.

The session was marked by a dominant $4.37 million put sale at the $400 strike, signaling strong bullish conviction, while a $1.49 million call sale at $535 suggested traders are capping upside expectations. The net flow leaned decisively bullish, with premium sellers underwriting downside risk rather than chasing a breakout.

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Options Indicators

AMD’s implied volatility stands at 59.27%, while its IV percentile is 39.44%, which places current volatility in a broadly neutral range rather than at an extreme. Even though the absolute IV level is relatively high, the percentile suggests AMD options are not especially expensive versus their own recent history, and with an IV/HV ratio of 0.74, implied volatility is running below historical volatility, indicating options look fairly priced to slightly cheap on a relative basis rather than richly valued. The Call/Put volume ratio is 1.69.

Large Trades

A PUT sale worth $4.37 million was the largest large trade of the session, with 1,100 contracts sold at the $400.00 strike expiring on 2027-03-19. With AMD referenced at $514.39, this put sits out of the money, making it a moderately bullish income-style position: the seller is collecting premium while expressing confidence that the stock is unlikely to fall below that strike by expiration, or is willing to accumulate shares at a much lower effective entry level if assigned. The long-dated tenor also suggests patience and a willingness to underwrite downside risk rather than chase immediate upside.

A CALL sale worth $1.49 million was the second notable large trade, with 1,500 contracts sold at the $535.00 strike expiring on 2026-09-04. Since the strike is above the current stock reference of $514.39, the call is out of the money, and the trade reflects a bearish-to-cautious stance: the seller is monetizing premium while signaling expectations that AMD may struggle to sustain a move above $535.00 into expiration. Strategically, this is consistent with capped-upside positioning or premium collection under a view that near-to-medium-term upside may be limited.

Overall, the large-trade flow was clearly bullish, with total bullish amount at $5.34 million versus total bearish amount at $1.60 million, leaving a net difference of $3.74 million to the bullish side. The directional takeaway is therefore constructive on AMD, mainly because the bullish total was dominated by a very large out-of-the-money long-dated put sale, which signals meaningful willingness to absorb downside risk in exchange for premium. While there was a sizable bearish out-of-the-money call sale and some smaller bearish activity elsewhere, the balance of capital still leaned decisively toward bullish premium-selling structures, suggesting traders were more comfortable underwriting weakness than positioning for a major downside break.

Strategy Reference

For a similarly bullish income strategy, selling the OTM $450 put in a nearer expiration could offer a lower assignment probability, while a bull put spread using the $400/$350 strikes allows for premium collection with defined risk and reduced margin requirements.