Saad Ullah
⬤ Advanced Micro Devices shares pushed past $200 during Tuesday's session, gaining more than 2% as options traders showed clear conviction on the upside. The stock held around $202 while derivatives activity told a compelling story—net call premium stayed positive most of the day, and put activity barely registered on traders' radars.
⬤ Options flow painted a clear picture of bullish sentiment. Total premium crossed $160 million, with the net figure staying firmly in positive territory as AMD climbed. Call buyers dominated the action while put premiums hovered near zero, showing traders weren't hedging for downside risk. The alignment between rising share price and call-heavy positioning suggests conviction rather than cautious speculation.
⬤ Even when AMD's momentum briefly stalled above $200, call premium kept flowing in. The lack of defensive put buying during these pauses reinforces what the data already showed—traders expect the rally to continue. For a stock this size in the semiconductor space, that kind of one-sided positioning doesn't happen without reason.
⬤ This matters beyond AMD itself. As one of the major chip stocks, AMD's intraday moves often signal where sentiment is heading across the broader tech sector. When options flow and price action line up this cleanly on a stock of this scale, it typically influences short-term momentum expectations for other large-cap chipmakers trading in the same ecosystem.
Saad Ullah
