Advanced Micro Devices is set to report quarterly earnings after the market close.
Latest close: $476.15
Consensus estimates: Earnings per share (EPS) are expected to reach $1.615, up 228.8% from a year earlier, while revenue is projected at $11.28 billion, representing 52.1% year-over-year growth.
Options Market Signals
Options expiring on August 7, the week of the earnings release, imply elevated volatility. With three days remaining until expiration, AMD's at-the-money implied volatility (IV) stands at 127.42%, translating into an implied post-earnings move of approximately ±11.55%.
Based on options pricing, the market is implying roughly a 68% probability that AMD shares will trade within a range of $428.65 to $540.63 between the earnings announcement and the August 7 expiration.
The elevated implied volatility underscores investors' expectations that the earnings report could trigger a significant move in the stock.
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Large Trades
A CALL buy worth $2.57 million was the largest single-leg trade of the session, with 1,232 contracts purchased at the 495.0 strike expiring on 2026-08-07. With AMD referenced at $484.64, this call was out-of-the-money at the time of execution, making it a clearly directional bullish bet that requires upside beyond the current stock price to gain intrinsic value. The choice to buy upside exposure rather than sell premium suggests the trader was seeking leveraged participation in a continued advance, with defined risk limited to the premium paid and meaningful convex upside if AMD rallies through the strike into expiration.
A PUT sale worth $1.60 million was the second notable large trade, involving 2,312 contracts sold at the 370.0 strike expiring on 2026-09-04. Given the reference stock price of $484.64, this put was out-of-the-money, so the position reflects a bullish stance through willingness to collect premium while betting AMD will remain above 370.0 into expiration. Strategically, this kind of short put expresses constructive sentiment and can also indicate comfort with potentially acquiring shares at an effective lower level if assigned, while primarily functioning as an income-generating bullish trade as long as downside remains contained.
Overall, the large-trade flow in AMD was decisively bullish. All of the highlighted large trades and the full set of reported block activity leaned to the upside, with no bearish large-trade flow appearing in the sentiment summary. The pattern is especially constructive because it combines aggressive upside call buying with out-of-the-money put selling, indicating that traders were not only positioning for further gains but also showing confidence that AMD can stay comfortably above lower support zones. Taken together, the options flow points to a clearly positive directional outlook with institutional participants expressing confidence in continued strength rather than preparing for downside risk.
Strategy Reference
For investors seeking to participate with reduced premium outlay in this elevated IV environment, a bull call spread—such as buying the 495 call and selling a higher 520 call for the same expiration—can define risk while capping cost. Alternatively, a seller targeting a low assignment probability might consider the out-of-the-money 420 put, which lies further below the current price than the large trade’s 370 strike, to collect premium with a wider buffer.