Should you trade call options on AMD today

Trading call options on AMD today could be strategic, considering the following points:

1. Quarterly Results Expectation: The expectation of AMD's quarterly results after the bell on July 30 is a significant factor influencing option prices. The call put ratio of 2 calls to 1 put suggests a positive sentiment among investors.
2. Implied Volatility: The implied volatility for AMD's August weekly call options is at 104, indicating a high level of market anticipation for the earnings release. This volatility could translate into potential price swings, making calls a viable option for traders looking for price movements.
3. Pricing the Uncertainty: The straddle prices, at 140 for August 2 weekly options, reflect a 9.5% to 10% potential move in the stock price due to the quarterly results. This suggests that even if the stock price remains unchanged, option traders can still make money if the options are priced correctly.
4. Technical Indicators: The stock's technical indicators show a bearish trend with an RSI below 30, indicating it may be oversold. This could imply a potential for a bounce-back in the stock price, making calls a potentially profitable choice.

5. Market Sentiment: The consensus rating is a "Strong Buy" with an average price target of $197.36, which is significantly higher than the current price. This suggests that analysts are optimistic about AMD's future performance, supporting the idea of trading call options.

6. Professional Consideration: However, it's important to note that options trading involves significant risk. It's advisable to have a thorough understanding of the associated risks and to implement appropriate risk management strategies.

In conclusion, given the positive sentiment, high implied volatility, and the potential for a price movement post-earnings, trading call options on AMD could be a viable strategy for those looking to capitalize on the expected volatility. However, it's crucial to consider individual risk tolerance and market conditions before making any trading decisions.