AMD Options Signal $235 Call Battle: Bullish Breakout or Bearish Trap?

• AMD trades at $207.30, down 0.13% with volume surging to 13.6 million shares.
• Options data shows 17,049 open $235 calls (this Friday’s top OTM) vs. 18,733 open $180 puts—the most bearish strike.
• Block trades hint at big money moves: A 1,500-lot MI300 call buy and a 1,600-lot put purchase in September.

Here’s the thing: AMD’s options market is locked in a tug-of-war between bulls eyeing a $235 breakout and bears bracing for a $180 collapse. The stock’s technicals are mixed—RSI at 42.64 (oversold territory) but MACD (-3.9) still negative. This isn’t a clear signal—it’s a chess match. And you? You need to decide where to play it.

The $235 Call vs. $180 Put Showdown

Let’s unpack the options chaos. This Friday’s top OTM calls are stacked at $235 (17,049 open interest), $220 (15,770), and $230 (15,231). Puts? The $180 strike dominates with 18,733 open contracts, followed by $190 (16,241). The put/call ratio for open interest is 0.95—almost balanced, but the skew toward lower strikes suggests bears are hedging a potential pullback.

Block trades add intrigue. A 1,500-lot AMD20251017C165 call buy (October expiration) and a 1,600-lot AMD20250919P155 put purchase (September) signal big players are positioning for multi-month moves. But here’s the twist: The $235 call OI is 17,049 this Friday, while the $180 put OI is 13,837 next Friday. That means the bearish sentiment is lingering longer—could be a sign of caution.

News That Could Tip the Scales

AMD’s Q3 beat (EPS $1.20 vs. $1.17 expected) and a $280 price target from Piper Sandler are bullish. The Helios AI system launch in mid-2026 is a game-changer if execution goes smoothly. But don’t ignore the red flags: The stock is overvalued by Zacks’ metrics, and CEO Lisa Su’s $26.9 million insider sale raises questions.

The China angle is wild card. Su’s Lenovo visit amid U.S. export easing hints at strategic moves, but regulatory risks still loom. If investors price in AI optimism while ignoring valuation cracks, AMD could gap higher. If not? The $180 put OI might get tested.

Trade Ideas: Calls, Puts, and Precision Entries

For options traders:

• Bullish Play: Buy the AMD20251219C235 (this Friday’s $235 call) if price breaks above the 200D MA ($156.49) and holds above $210. Target: $240 (30D resistance at $221.66).
• Bearish Play: Buy the AMD20251219P180 if price drops below $200 (lower Bollinger Band at $200.13). Stop loss at $205 to protect against a rebound.

For stock traders:

• Entry near $205 (intraday low) if RSI crosses above 50. Target: $220 (30D resistance).
• Short near $225 if MACD crosses below the signal line. Stop loss at $230.

Volatility on the Horizon

AMD’s options market is a pressure cooker. The $235 call OI vs. $180 put OI battle isn’t just numbers—it’s a psychological war. If bulls win, the 30D MA at $227.33 becomes a floor. If bears take control, the 200D MA at $160.10 could be a wall. Either way, this week’s expiration (Dec 19) will be a litmus test.

Your move? Stack the odds by buying the $235 call with a tight stop or shorting the $225 put if the stock falters. But watch that $200 level—it’s the line between a rally and a rout.