Option Focus | Advanced Micro Devices Sees $31.38 Million Put Sale at $400 Strike, Signaling Bullish Long-Term Confidence Amid Elevated Volatility

Option Witch
Nov 04

Advanced Micro Devices closed at 483.90 USD, marking a 3.65% gain.

Options flow showed a dominant $31.38 million put sale at the $400.00 strike, alongside a $215,900.00 net-credit short put spread. The activity pointed to institutional comfort with longer-term support levels and a generally bullish positioning bias, though part of the flow also suggested expectations for range-bound consolidation rather than a straight-line rally.

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Options Indicators

Advanced Micro Devices currently has an implied volatility of 70.51%, and with an IV percentile of 78.88%, its options sit in an elevated volatility regime where contracts are priced expensively versus their own recent history. At the same time, the IV/HV ratio of 0.99 suggests implied volatility is broadly in line with realized volatility, indicating the market’s pricing is rich in historical terms but still fairly consistent with the stock’s actual movement profile rather than dramatically overstating it.

The Call/Put volume ratio is 0.89.

Large Trades

A put sale worth $31.38 million was the standout trade, with 4,000 contracts sold on the December 15, 2028 $400.00 put. With AMD referenced at $483.90, this strike sits out of the money, making the position a bullish cash-secured-style premium-selling expression that benefits if the stock remains above $400.00 into expiration. Strategically, this is a large-scale willingness to take downside assignment at a lower level while monetizing elevated premium, which signals confidence in AMD’s longer-term price floor and a constructive outlook rather than an expectation of a sharp decline.

A short put spread strategy with a net credit of $215,900.00 was also displayed, built by selling 1,411 contracts of the November 6, 2026 $390.00 put and 1,411 contracts of the November 6, 2026 $380.00 put. Both strikes are out of the money versus the $483.90 reference price, and because the structure includes two sold puts at different strikes, it is best read as a premium-collection spread-style positioning aimed at a stable-to-firm trading range rather than an aggressive upside chase. The net credit indicates the trader was paid upfront to express a view that AMD is unlikely to break materially lower toward those levels by expiration, though the slightly cautious tone of the structure reflects a more neutral-to-mildly bearish volatility or range expectation than the outright bullishness of the biggest single-leg put sale.

Overall, the large-trade flow leans clearly bullish. The dominant feature was heavy out-of-the-money put selling, which typically reflects confidence that AMD can stay comfortably above lower strike levels while traders collect premium, and the broader block activity was overwhelmingly skewed toward constructive downside-selling exposure rather than protective bearish positioning. Taken together, the figures suggest institutional participants are broadly comfortable with AMD’s medium- to long-term support zone and are expressing a favorable directional bias, even if part of the flow also points to expectations for consolidation rather than a straight-line rally.

Strategy Reference

For a lower assignment probability, a seller could consider the $400.00 strike or slightly below it in a nearer-dated expiration, while a defined-risk alternative would be selling a put spread such as the $390.00/$380.00 structure to cap margin requirements while still collecting premium.

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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