Advanced Micro Devices closed at USD 623.77, up 1.34 percent.

The options market flashed a clearly bearish institutional tilt, led by a $7.50 million net credit bear call spread and a $4.92 million long put purchase. The largest displayed trade involved selling in-the-money calls and buying out-of-the-money calls, while the second highlighted order bought long-dated puts with a strike far below spot. The broader large-trade mix is dominated by put buying, signaling limited confidence in sustained upside.

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Options Indicators

Advanced Micro Devices currently has an implied volatility (IV) of 58.14%, while its IV percentile stands at 34.26%, indicating that although absolute volatility is fairly high, it remains in a neutral historical range rather than an elevated one. With the IV/HV ratio at 1.05, option pricing is only slightly above the stock’s realized volatility, suggesting premiums are generally reasonable rather than notably cheap or expensive. The Call/Put volume ratio is 1.10.

Large Trades

A bear call spread collecting a $7.50 million net credit was the largest displayed trade, and it expressed a clearly bearish stance on AMD. The position sold 1,500 Dec. 18, 2026 $600.00 calls that were in the money and bought 1,500 Dec. 18, 2026 $750.00 calls that were out of the money, defining risk while taking in premium upfront. As a call spread with both a short call and a long call, this is a spread strategy rather than a synthetic structure, and the correct size is the stated $7.50 million net credit. Strategically, this points to premium collection tied to a view that AMD is unlikely to sustain a major rally above the upper strike by expiration, reflecting a bearish-to-capped-upside outlook.

A put buy worth $4.92 million was the other highlighted large trade, consisting of 1,500 Jan. 21, 2028 $380.00 puts purchased outright. With AMD referenced at $623.77, the strike sits out of the money, so this trade looks like a longer-dated bearish hedge or downside speculation rather than protection against an immediate in-the-money risk. The use of long-dated puts suggests the trader is paying premium for extended downside exposure, signaling concern that AMD could face meaningful weakness over time. Overall, the bulk-order flow leans clearly bearish: the standout trade was a premium-collecting bear call spread, while the second-largest highlighted order was a sizable long put, and the broader large-trade mix is dominated by put buying, indicating institutional sentiment is tilted toward downside risk and limited confidence in sustained upside from current levels.

Strategy Reference

For a low assignment probability on the call side, a seller could consider an out-of-the-money strike such as the $700.00 call expiring within 30–45 days, where delta is lower; alternatively, if margin is a concern, a bear call spread similar to the featured trade—selling the $650.00 call and buying the $750.00 call—could cap risk while still expressing a neutral-to-bearish view.