AMD Plunges 2.39% as Short-Term Bearish Signals Clash with Long-Term Optimism

Summary
• AMD trades at $155.73, down 2.39% from its $159.54 close
• Intraday range spans $154.99 to $160.21, reflecting volatile 16:09 ET action
• Turnover surges to 26.47M shares, 1.64% of float

Advanced Micro Devices faces a pivotal intraday test as short-term bearish momentum clashes with long-term bullish fundamentals. The stock’s sharp decline from its 100D/200D averages and oversold RSI levels signal immediate caution, yet its 52W high of $186.65 and dynamic 79.9x P/E suggest underlying resilience. Traders must navigate this tension between technical weakness and macro-level demand for AI chips.

Short-Term Bearish Momentum Overshadows Long-Term Optimism
AMD’s 2.39% intraday drop stems from a confluence of technical triggers. The RSI at 43.10 signals oversold conditions, while the MACD (-2.25) and negative histogram (-1.81) confirm bearish momentum. Price action has pierced the 30D support band (161.79–162.46) and now trades below the 100D ($137.38) and 200D ($125.95) averages. This breakdown reflects profit-taking after a recent rally and heightened volatility as the stock tests its 52W low of $76.48.

Semiconductor Sector Suffers as AMD Outpaces INTC's Mild Decline
While the semiconductor sector remains under pressure, AMD’s 2.39% decline far outpaces Intel’s (INTC) -0.57% move. The sector’s mixed performance highlights divergent investor sentiment: INTC’s modest drop suggests caution in legacy chipmakers, whereas AMD’s sharper selloff reflects fears of overvaluation in AI-focused plays. This divergence underscores the sector’s bifurcation between growth and value segments.

Options Playbook: Capitalizing on AMD's Volatility with Strategic Puts and Calls
• RSI: 43.10 (oversold)
• MACD: -2.25 (bearish), Signal: -0.43
• Bollinger Bands: 148.22 (lower) vs. 165.74 (middle)
• 200D MA: $125.95 (below price)

AMD’s technicals present a high-volatility trading environment. Key levels to monitor include the 200D MA ($125.95) and Bollinger Band support ($148.22). Short-term bearish momentum suggests a test of the 52W low ($76.48), but long-term buyers may re-enter near $148.22. Two options stand out for directional plays:

• AMD20250919P149 (Put):
- Strike: $149, Expiry: 2025-09-19
- IV: 42.39% (moderate), Leverage: 108.33%, Delta: -0.23, Theta: -0.0075, Gamma: 0.02928
- Payoff (5% downside): $149 - $147.94 = $1.06
- High leverage and gamma make this ideal for a sharp decline

• AMD20250919P145 (Put):
- Strike: $145, Expiry: 2025-09-19
- IV: 44.51% (high), Leverage: 199.99%, Delta: -0.137, Theta: -0.0334, Gamma: 0.02010
- Payoff (5% downside): $145 - $147.94 = -$2.94 (breakeven at $145)
- Strong liquidity (73,610 turnover) and high IV position this for a moderate bearish move

Aggressive bears should prioritize AMD20250919P149 for its high leverage and gamma, while AMD20250919P145 offers a safer entry for a 5% pullback. If $148.22 breaks, these puts could outperform.

Backtest Advanced Micro Devices Stock Performance
To evaluate AMD’s performance after a –2 % intraday plunge we first need to agree on two practical details: 1. Plunge definition • Daily close-to-close drop ≥ –2 % (easiest to obtain with daily data) • OR intraday drop from the day’s open to the low ≥ –2 % (requires intraday data) 2. Back-test horizon & settings • Start date: 2022-01-03 (first trading day of 2022) • End date: 2025-09-10 (latest available close) • Holding-period logic: e.g., test 1-, 5-, 10-, 20-day forward returns, or use a fixed exit after N days • Optional risk controls (stop-loss, take-profit, etc.)Please let me know which plunge definition you prefer and how you’d like the post-event holding period (or exit rules) to be set. Once confirmed, I’ll fetch the data, generate the event dates, and run the event back-test for you.

Act Now: AMD at Pivotal Crossroads—Defensive Puts or Wait for Rebound?
AMD’s 2.39% drop signals a critical juncture between short-term bearish momentum and long-term AI-driven demand. Traders should prioritize defensive puts like AMD20250919P149 to capitalize on volatility, while longer-term investors may wait for a rebound to the 200D MA ($125.95). The sector’s mixed performance, with INTC down -0.57%, highlights the need for precision in positioning. Watch for a breakdown below $148.22 or a reversal above $160.21 to dictate next steps.