Market News

November 22, 2016  Tue 11:07 AM CT

A large investor is positioning for more upside potential in Advanced Micro Devices.

OptionMonster's market scanner shows that 28,973 April 7 calls were sold for $2.47 while 28,973 April 10 calls were purchased for $1.09 today. Volume was below open interest in the lower contracts, indicating that a bullish position was rolled to a higher strike ansurpassed open interest of 15,601 contracts, an indication new money was put to work.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

AMD is down 2.13 percent to $8.75 in morning trading but is up 37 percent in the last month. The chip maker's next earnings report is expected after the close on Jan. 17.

Overall option volume in the name is twice its daily average so far today. Calls outnumber puts by a bullish 5-to-1 ratio.

News Archives

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »