AMD Options Signal Bullish Bias: Target $220 Calls as AI Momentum Builds

• AMD trades at $214.71, down 0.13% from its 52-week high of $215.48.
• Call open interest spikes at $220 and $225 strikes ahead of Friday’s expiry, signaling aggressive bullish bets.
• Institutional block trades and AI partnership news suggest upside catalysts ahead.

Here’s the takeaway: AMD’s options market is leaning bullish, with heavy call buying at key strikes and technicals hinting at a potential breakout. But watch for support at $209.24—break below that, and the bear case gets louder.

Bullish Sentiment in Options and Block Trades

The options chain tells a clear story. This Friday’s expiry sees AMD20260102C220 and AMD20260102C225 as top call strikes, with open interest of 10,769 and 7,898 contracts respectively. That’s not just noise—it’s a vote of confidence from traders expecting a push above $220. Meanwhile, puts are clustered at extreme levels like $135, suggesting downside fear isn’t front of mind for most.

Block trades add intrigue. A $991,500 buy of AMD20251017C165 and a $262,400 put purchase (AMD20250919P155) hint at hedging or speculative bets. But the bigger picture? Call-heavy positioning dominates, especially for next Friday’s expiry where AMD20260109C220 (OI: 7,402) is the standout. If AMD cracks $215, these strikes could ignite.

News and AI Hype Fuel the Narrative

AMD’s 2025 was a rocket ship—78% stock gains, $9.25B Q3 revenue, and a 6GW MI450 GPU deal with OpenAI. Analysts are pricing in 80%+ AI revenue growth, and the options market’s call bias aligns with that optimism. But here’s the catch: AMD trades at 54x 2026 earnings, a premium to Nvidia. If execution falters or China demand stays muted, the $200 level (200D MA at $160.93) could feel very far away.

Actionable Trade Ideas

For options traders: Buy AMD20260109C220 if AMD breaks above $215. The $220 strike is a psychological hurdle, and with 7,402 contracts in open interest, there’s liquidity to ride a rally. Alternatively, a bear put spread at $200 and $190 could hedge downside risk if volatility spikes.

For stock players: Consider entry near $213–$215 if the price holds above its 30D MA ($217.47). A breakout above $215.48 (intraday high) targets $225, where the Bollinger Upper Band sits at $227.40. Stop-loss below $209.24 (intraday low) would force a reevaluation.

Volatility on the Horizon

AMD’s story is a tightrope walk between AI euphoria and valuation reality. The options market’s call-heavy stance and institutional buying (Vanguard’s $21.9B stake) suggest conviction in the upside. But with RSI at 46.86 and MACD near zero, the stock isn’t screaming for a parabolic move—yet. Keep an eye on OpenAI’s Q2 2026 GPU deployment and Oracle’s AI cluster rollout. If those hit, the $230–$240 calls could become the new battleground.

Bottom line: AMD is a high-conviction trade for those who believe in its AI narrative. But with a 54x multiple and a $200 support level that’s 5% away, this isn’t a "buy and forget" play. Stay nimble, and let the options data guide your entries.