Advanced Micro Devices closed at USD 404.40, down 17.26%.
Large options trades pointed to aggressive positioning after the decline. The standout was a $46.22 million double-long put combination, reflecting high-conviction bearish flow. A $12.89 million bull call spread provided offsetting upside interest, but overall activity leaned defensive and directional to the downside. With implied volatility elevated and premium rich, institutions favored structures with intrinsic value and defined risk rather than cheap upside speculation.
>>Don’t Let Fees Quietly Eat Into Your Returns — Get up to SGD 200 in Options Rewards!
Options Indicators
Advanced Micro Devices currently has an implied volatility of 82.50%, and with an IV percentile of 91.24%, its volatility sits in an elevated range where options are priced expensively relative to its own recent history. The IV/HV ratio of 1.13 further indicates implied volatility is running above realized volatility, suggesting the options market is embedding a premium for forward uncertainty rather than offering especially cheap exposure. In this setup, outright option buying faces a richer premium environment, while structures that help offset premium cost may be more efficient. The Call/Put volume ratio is 1.12.
Large Trades
A directional double-long put combination worth $46.22 million was the biggest displayed trade, consisting of long 530.0 puts expiring November 6, 2026 and long 540.0 puts expiring November 6, 2026, for a net debit of $46.22 million. Because both legs are bought puts, this is a same-direction long put combination rather than a spread, expressing an aggressive bearish view and a bet on a large downside move. Both strikes sit well in the money versus the $404.40 reference stock price, which makes the structure a high-conviction downside position with substantial intrinsic exposure as well as continued participation if AMD weakens further.
A bull call spread with a net debit of $12.89 million was the second highlighted trade, built by buying the 510.0 calls and selling the 580.0 calls for February 19, 2027 expiration. This is a classic bullish vertical call spread, and the preprocessed net debit shows the trader paid premium upfront to position for upside while capping gains above 580.0. With both strikes out of the money relative to the $404.40 stock reference, the trade reflects a defined-risk directional bet on a meaningful rally over time rather than immediate intrinsic exposure, and the short 580.0 call indicates the trader is targeting upside into a specific range rather than chasing unlimited appreciation.
Overall, the large-trade flow leans clearly bearish on AMD. Although there is notable bullish activity, including the sizable bull call spread and several put-selling structures, the tape is dominated by downside-oriented positions such as the massive long-put combination, multiple bear put spreads, and a synthetic short, indicating institutions are more focused on protecting against or positioning for weakness than on upside breakout potential. The balance of premium and the repeated use of bearish defined-risk structures suggest market participants see downside risk as the more urgent near-to-medium-term scenario.
Strategy Reference
For a low assignment probability, a seller could consider the 300.00 strike put in a nearer expiration, or use a bear put spread such as buying the 420.00 put and selling the 350.00 put to reduce margin and premium outlay while maintaining downside exposure.