Advanced Micro Devices closed at 429.56 USD, down 5.51%.

Despite the daily decline, large options traders displayed a resolutely bullish stance, with all tracked large trades being put sales. The headline flow was a $1.87 million deep out-of-the-money put sale, signaling long-term confidence. Total bullish premium collected reached $2.95 million, against zero bearish flow, painting a picture of institutional conviction that AMD’s downside is well-supported.

>>>Unlock Earnings Insights & Commission-Free Trading Benefits !

Options Indicators

AMD’s implied volatility is 85.76%, and with an IV percentile of 92.83%, current option volatility is clearly in an elevated regime, meaning options are priced expensively versus their own recent history. The IV/HV ratio of 1.16 also indicates implied volatility is running above realized volatility, suggesting the market is embedding a premium for forward uncertainty rather than reflecting only past price movement. In this setup, outright option buying faces a relatively high volatility cost, while premium-selling structures or defined-risk spreads may offer a more efficient way to express a view. The Call/Put volume ratio is 1.08.

Large Trades

A PUT sale worth $1.87 million was the largest displayed trade, with 2,000 contracts of the January 15, 2027 $240.00 put sold. With AMD referenced at $429.56, this strike is deeply out of the money, making the position a bullish premium-collection trade that expresses confidence the stock will remain well above $240.00 through expiration. Strategically, selling such a far-out-of-the-money long-dated put suggests the trader is comfortable taking on downside assignment risk in exchange for income, while signaling a constructive longer-term view on AMD.

Another notable trade was a PUT sale worth $0.95 million in the July 31, 2026 $400.00 put, totaling 4,063 contracts. This strike also sits out of the money versus the $429.56 reference price, so the trade reflects another bullish short-put position. The intent appears to be premium collection with a moderately supportive directional stance, as the seller is effectively betting AMD can hold above $400.00 into expiration and that near-to-medium-term downside will remain limited.

Overall sentiment is clearly bullish, with total bullish large-trade flow at $2.95 million versus bearish flow at $0.00 million, leaving a net difference of $2.95 million to the bullish side. The directional judgment is decisively positive, as all tracked large trades were bullish and the two largest displayed trades were both out-of-the-money put sales, a pattern typically associated with investors willing to monetize elevated premium while expressing confidence in downside support and stock stability.

Strategy Reference

For traders seeking a similar high-probability premium capture with lower capital commitment, selling a nearer-term put spread, such as a bull put spread using the 400/390 strikes, can define risk while still benefiting from the elevated IV percentile.