AMD Options Signal $200 Put Pressure Amid AI Volatility: Here’s How to Play the Rebound

• AMD’s stock plunges 7% to $199.96, breaking below key support at $205.38 (lower Bollinger Band).
• Options market shows heavy put open interest at $190 and $180, while calls at $235 and $280 hint at lingering bullish bets.
• Block trades reveal a $1.6M put purchase at $155 and a $255K call buy at $165—both pointing to strategic positioning.

AMD’s price action today is a rollercoaster. After opening at $201.35, the stock cratered to $194.28—a 7% drop that’s slicing through technical levels like a hot knife. But here’s the twist: the options market isn’t just reacting to the price drop. It’s telling a story of fear and hope, and traders who read it right could spot a golden opportunity.

The Options Imbalance: Fear Below $200, Hope Above $230

Let’s start with the puts. The $190 strike (OI: 12,656) and $180 strike (OI: 11,643) dominate the put chain for this Friday’s expiration. That’s not just bearish—it’s a red flag. Think of it like a crowd rushing to the exits: if enough traders are betting on a price drop below $190, the stock could face a freefall. But here’s the catch: the put/call ratio for open interest is 0.925, which isn’t extreme. The calls at $235 (OI: 10,452) and $280 (OI: 9,251) show some stubborn bullishness.

Now, the block trades add intrigue. On Sept 19, a $262,400 put block at $155 (AMD20250919P155) was bought—deep out of the money but signaling a bearish bet. Meanwhile, a $255K call block at $165 (AMD20250919C165) suggests someone’s hedging or speculating on a rebound. These moves aren’t random. They’re clues from big players.

News vs. Options: A Battle Between Short-Term Pain and Long-Term Gain

AMD’s recent news is a mixed bag. The 23% November drop? That’s panic mode. Google’s TPUs and rising memory costs are real threats. But here’s the flip side: AMD just partnered with OpenAI to deploy 6 gigawatts of GPUs, and its Helios AI platform is getting buzz. The CEO isn’t sweating the short-term—she’s projecting 35% annual growth for the next five years.

The options market is pricing in the short-term pain (those $190 puts) but the news hints at long-term resilience. This is where the rubber meets the road. If AMD’s AI partnerships and product roadmap hold up, the $190 puts might expire worthless. But if the AI competition intensifies and costs spiral, those puts could be a lifeline.

Trade Ideas: Play the Rebound or Hedge the Drop

Here’s how to act on this tension:

1. For the bearish bet: Buy the AMD20251205P190 put (next Friday’s expiration). Why? The $190 strike has massive open interest, and if the stock breaks below $194.28 (today’s low), it could accelerate toward $180. Your stop-loss? If AMD rallies above $205.38 (lower Bollinger Band), cut the trade.

1. For the bullish counterattack: Buy a call spread with the AMD20251205C230 (OI: 4,962) and sell the AMD20251205C235 (OI: 4,656). This limits risk while capitalizing on a potential rebound. AMD needs to hold above $195 (30D support) for this to work.

1. Stock entry: If AMD bounces off $195, consider buying near $195–$197 with a target at $215 (previous close). Use a tight stop below $190 to protect gains.

Volatility on the Horizon: What to Watch

AMD’s future hinges on two things: execution on its AI strategy and how the market digests Google’s TPU threat. The options data suggests a 50/50 battle—fear of a $180 drop vs. hope for a $230+ rebound. But here’s the kicker: the 200D moving average is at $111.71. If AMD breaks below that, the bear case becomes a freefall.

For now, the stock is teetering on the edge. The options market is pricing in a worst-case scenario, but the fundamentals—especially the OpenAI partnership and ZAYA1’s success—hint at a stronger AMD. This is a high-risk, high-reward setup. Play it with discipline, and you might ride the next AI wave.

Bottom line: AMD’s story isn’t over. It’s a tug-of-war between short-term panic and long-term potential. The options market is giving you a map—now it’s up to you to choose the path.