AMD Options Signal Bullish Breakout Potential: Key Strike Levels and Trade Setups for Dec 2025

• AMD’s Q4 revenue smashed estimates, driving a 1.07% intraday gain to $219.85.
• Options data shows heavy call open interest at $230 and $222.5, with a put/call ratio of 0.94 hinting at cautious bullishness.
• Recent block trades and news of AI partnerships, a $2B buyback, and a Xilinx acquisition amplify long-term upside.

Here’s the core insight: AMD’s options market is pricing in a high-probability upside breakout, with technicals and news aligning for a bullish trade. But watch the $204.99 support level—it’s a critical line in the sand.

What the Options Chain Reveals About Market Sentiment

Let’s start with the numbers. This Friday’s options chain shows AMD20251205C230 (OI: 9,639) and AMD20251205C222.5 (OI: 8,225) as the most watched call strikes. That’s not random—those strikes sit just above the 30-day support/resistance range of $204.99–$206.20. Traders are betting that if AMD holds above $213.5 (today’s intraday low), it could surge toward $230, where heavy call open interest suggests a liquidity trap for short-term sellers.

On the put side, AMD20251205P165 (OI: 11,134) dominates next Friday’s chain. That’s a deep OTM put, but the volume suggests some hedging activity. The put/call ratio of 0.94 (calls > puts) isn’t screamingly bullish, but it’s not bearish either. The real story? Block trades. The AMD20251017C165 call (1,500 contracts traded for $991,500) and AMD20250919P155 put (1,600 contracts bought) hint at institutional positioning. Someone’s prepping for a rally—or hedging against the EU antitrust risk.

How Recent News Fuels the Bull Case

AMD’s Q4 results were a rocket boost. $8.2B revenue, a Ryzen/EPYC-driven AI surge, and a $32B guidance bump? That’s not just noise—it’s a catalyst. The Ryzen 9000 launch and Xilinx acquisition (adding FPGA tech) position AMD to eat into Intel and NVIDIA’s lunch. And the Tesla partnership? That’s a $1.2B five-year win for AI chips in cars.

But here’s the catch: The EU investigation could create a short-term headwind. That’s why the AMD20251205P200 (OI: 1,574) and AMD20251205P215 (OI: 2,052) puts are quietly building. Retail traders might not care about regulatory risks, but institutions do.

Actionable Trade Setups for Today

For options traders, the most compelling play is AMD20251205C230 (expiring Dec 5). Why? The strike is a liquidity magnet, and if AMD closes above $220.13 (today’s high), the call could see a gamma-driven pop. For a longer-term bet, AMD20251212C250 (OI: 2,879) offers leverage if the stock breaks above its 30-day MA of $238.41.

For stock buyers, consider entering near $219.85 with a tight stop just below $213.5. The first target is $222.5 (a key call strike), followed by $230. If the stock dips to $213.5 and holds, it could rebound toward the Bollinger Upper Band at $271.74.

A risk-reversal strategy could also work: Buy AMD20251205C230 and sell AMD20251205P165 to offset premium costs. This caps downside risk while capitalizing on the bullish momentum.

Volatility on the Horizon

AMD isn’t just a short-term story. The Xilinx acquisition, $2B buyback, and Texas fab plans are long-term tailwinds. But the EU probe and AI sector cyclicality mean volatility is inevitable. For now, the options market and technicals are aligned for a bullish breakout.

Bottom line: This is a stock with momentum and catalysts. If you’re in, lock in some downside protection. If you’re on the sidelines, the $213.5 support level is your best entry trigger. Either way, AMD’s December could be a masterclass in options-driven price action.