Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 10, 2012  Wed 9:53 AM CT

AMD: SEE CHART GET CHAIN FIND STRATEGIES
Shares of Advanced Micro Devices have been cut in half in the last three months, but one trader apparently believes that the bloodletting is ending.

optionMONSTER's tracking systems detected the sale of 5,000 October 3 puts for $0.06 at the same second this morning. Open interest in the strike was 3,678 contracts at the start of the session, so this is a new position.

AMD is down 2.92 percent to $3.15 today. The chip maker's shares have plunged since trading above $8 in April, gapping down from the $6 level after its latest earnings report in July, as the global PC market faces increasing pressures.

Today's put seller is betting that AMD will hold above the $3 strike price by expiration at the end of next week. If the stock is below that level, the trader faces the prospect of having to buy shares for an effective price of $2.94 including the credit from the put sale. (See our Education section)
Share this article with your friends


Related Stories

AMD

Puts target more losses in AMD

October 23, 2014

The semiconductor maker has gotten slammed recently, first when its CEO stepped down, then on Microchip Technology's industry warning, and again on poor quarterly numbers of its own last Friday.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER