AMD Options Signal $230 Bull Call Play as AI Hype Fuels $250+ Breakout Potential

• AMD trades at $221.84, up 0.4% with volume surging to 28 million shares
• Options data shows heavy call open interest at $300 and $250 strikes for Friday expiration
• Block trades bought 5,000 puts at $240 and 4,000 calls at $215–$235, hinting at strategic positioning

Here’s the takeaway: AMD’s options market is pricing in a high-probability bullish breakout. With technicals aligned for a short-term rally and AI-driven news fueling demand, the stock shows clear upside potential—especially if it holds above $215 support.

Bullish Imbalance in Options and Whale Moves

The options chain tells a story of aggressive bullish positioning. For Friday’s expiration (Jan 16), call open interest spikes at $300 (28,877 contracts) and $250 (23,496), while puts peak at $100 (23,227) and $140 (21,715). This suggests institutional players are hedging extreme outcomes but leaning heavily on upside potential.

The block trades add intrigue. A $9.5 million purchase of 5,000 puts at $240 (AMD20260116P240) might signal a hedge against a sharp pullback, but the simultaneous buying of 4,000 calls at $215–$235 (AMD20260116C215, AMD20260116C225, AMD20260116C235) shows conviction in a near-term rally. Think of it like a chess move: protect downside while betting on a breakout above $225.

AI News Validates Options Sentiment

AMD’s recent product blitz—Ryzen AI MAX+ 392, Ryzen AI Halo, and Helios AI platform—has investors salivating. The Ryzen AI Halo’s 126 TOPS of on-device AI power alone could redefine enterprise workflows, and the TCS partnership accelerates AI adoption. Analysts like KeyBanc’s John Vinh aren’t just bullish—they’re projecting $15 billion in AI revenue by year-end.

This isn’t just hype. When a stock like AMD sells out of CPUs and gets upgraded to "Overweight" by major banks, it creates a self-fulfilling prophecy. Retail traders chase momentum, and institutions lock in options plays to capitalize on the run. The result? A virtuous cycle of demand that could push shares past $250.

Actionable Trade Ideas for AMD

For options traders, the most compelling plays are:

• AMD20260116C225 (Jan 16 call): Buy if AMD closes above $224.50 today. Target $235+ by Friday.
• AMD20260123C230 (Jan 23 call): For a longer-term play if the $215 support holds.

For stock buyers, consider:

• Entry near $215 (30D support) with a stop below $212.50.
• Target zone: $225–$230 if the 200D MA ($166.82) continues to act as a floor.

Volatility on the Horizon

AMD’s technicals and options activity suggest a volatile few weeks. The RSI at 56 and MACD crossing above the signal line point to momentum building. If the stock breaks above $225, watch for a retest of the Bollinger Upper Band at $225.45—then a potential sprint toward $250.

But don’t ignore risks. The $215 support is critical; a close below $212.50 would trigger panic. For now, the data leans bullish—but stay nimble. As the block traders know, this is a game of inches in a stock that’s about to run.