AMD Options Signal Bullish Breakout Potential Amid $165-$170 Call OI Surge and AI-Driven Momentum

• AMD’s price fell 1.59% to $158.71, but technicals and options data suggest a short-term bullish bias.
• Call open interest dominates at $165–$170 strikes, while block trades hint at institutional positioning for a breakout.
• Recent $3B ZT Systems divestiture and $10B AI partnership with HUMAIN align with options-driven optimism.

AMD’s current price action and options market dynamics paint a compelling picture of near-term upside potential. Despite a 1.59% intraday decline, the stock remains above key moving averages and faces strong call option positioning at critical strike levels. This analysis synthesizes technical indicators, options sentiment, and strategic corporate moves to identify actionable opportunities.

Bullish Call OI at $165–$170 and Institutional Positioning Signal Breakout Readiness

The options chain reveals a striking imbalance in open interest (OI) for out-of-the-money (OTM) calls. For Friday expiration, the $165 strike leads with 37,347 OI, followed by $170 (28,966 OI) and $162.5 (17,972 OI). This concentration suggests institutional anticipation of a price surge above $165, likely driven by AI-related catalysts and earnings optimism. The put/call OI ratio of 0.84 further reinforces a bullish bias, with calls outpacing puts by 18%.

Notable block trades add context. A 1,500-lot purchase of AMD20251017C165 (expiring October 17) for $991,500 signals aggressive positioning for a $165+ move. Meanwhile, a 1,600-lot buy of AMD20250919P155 (September 19 expiration) at $262,400 highlights defensive positioning near the $155 support level. These trades suggest a "buy the dip" strategy if AMD tests key support zones.

AI-Driven News Flow and Strategic Moves Validate Options Sentiment

AMD’s recent news directly supports the bullish options narrative. The $3 billion divestiture of ZT Systems’ data center business to Sanmina and a $10 billion AI collaboration with HUMAIN underscore a strategic pivot toward high-margin AI infrastructure. Additionally, the launch of Instinct MI350 GPUs and ROCm 7 software stack positions AMD to capitalize on the $500B AI hardware market. These moves align with the call-heavy options positioning, as investors bet on margin expansion and revenue growth from AI-driven segments.

The $6 billion share repurchase authorization and Q3 2025 revenue guidance of $8.7 billion further reinforce confidence. With non-GAAP gross margins targeting 54%, AMD’s financials are primed to support a price retest of the $162.11 intraday high and eventual push toward $170.

Actionable Trade Ideas: Calls at $165–$170 and Stock Entry Near $158.71

For options traders, the AMD20251017C165 (Friday expiration) and AMD20251024C170 (next Friday) strikes offer high-probability setups. The $165 call is attractively priced given the 37,347 OI and recent block trade activity, while the $170 call benefits from the $170 OI concentration and AI-driven momentum. A conservative entry near $158.71 (current price) with a stop-loss below $157.05 (intraday low) targets $165–$170, aligning with Bollinger Band resistance at $167.30.

For a bearish hedge, the AMD20251017P152.5 (9,977 OI) provides downside protection if AMD fails to break above $165. A long-term investor could also consider a "bull call spread" by buying the $165 call and selling the $170 call to reduce cost, capitalizing on the high OI at both strikes.

Volatility on the Horizon: Balancing AI Optimism and Short-Term Risks

While the technicals and options data favor a bullish breakout, risks persist. The RSI at 69.9 suggests overbought conditions, and a close below $157.05 could trigger a retest of the $151.55 lower Bollinger Band. However, the 30-day support at $160.68–$161.28 provides a buffer, and the 200-day moving average at $127.04 remains a distant floor.

AMD’s upcoming Financial Analyst Day on November 11 could add volatility, but the current options positioning and news flow suggest the stock is more likely to trend upward. Traders should monitor the $165–$170 call OI levels and watch for a breakout above $167.30 to confirm the bullish case.