AMD Options Signal $250 Bull Call Play Amid AI Partnership Hype – Here’s How to Position

• AMD’s options market shows heavy call open interest at $250 and $260 strikes ahead of Friday’s expiry.
• Block trades hint at institutional bullishness, with 1,500 contracts traded on the AMD20251017C165 call.
• Technical indicators (RSI at 76, bullish Kline pattern) and AI partnership news align with a $250+ price target.

Here’s the deal: AMD’s stock is dancing on the edge of a breakout. The options market is whispering "upside" louder than the technicals, and the recent OpenAI partnership has lit a fuse under investor sentiment. While the stock trades near $238, the data screams that $250 is the next battleground. Let’s break it down.

Bull Call Play: Why $250 Is the Magic Number

The options chain is a treasure map. For Friday’s expiry, the $250 call (OI: 11,255) and $260 call (OI: 7,957) are the most crowded rooms in town. That’s not a coincidence. When you see call open interest stacking up at strikes 10%+ above current price, it’s like watching a crowd gather at a concert venue—someone’s expecting a show.

But it’s not just retail traders getting excited. The block trade on AMD20251017C165 (1,500 contracts, $991,500 turnover) suggests big players are hedging or scalping near the $165 strike. Meanwhile, the $225 put (OI: 6,788) for next Friday’s expiry acts as a safety net—like a seatbelt for a rollercoaster ride.

The risk? RSI is already at 76, flirting with overbought territory. If AMD can’t break above the 200D MA ($134.23) and hold, the $220–225 support zone could become a battleground. But with the MACD histogram surging and Bollinger Bands widening, the trend is clearly leaning bullish.

AI News: Fuel for the Fire or Smoke and Mirrors?

AMD’s partnership with OpenAI isn’t just a headline—it’s a strategic lifeline. Deploying 6 gigawatts of MI450 GPUs and granting OpenAI a 10% stake is the kind of move that turns skeptics into believers. Analysts are upgrading price targets to $270, and the stock’s 26% surge post-announcement proves the market is buying in.

But here’s the catch: execution matters. The warrants tied to OpenAI’s investment vest based on performance milestones. If AMD misses those targets, the stock could face a reality check. Still, the Oracle deal (50,000 MI450 accelerators) and Helios platform launch add layers of credibility. This isn’t just hype—it’s a multi-pronged attack on Nvidia’s dominance.

Trade Ideas: How to Ride the Wave

For options traders, the AMD250C25 (expiring next Friday) is a no-brainer if AMD holds above $235. With a $238 open and $235.69 intraday low, the stock is testing key support. Enter the call at $235–237, aiming for a $250+ exit. The RSI suggests a rebound is likely, and the block trades hint at liquidity at that level.

Want to play it safer? A bull call spread with AMD240C25 and AMD260C25 could cap risk while still capturing upside. The $240 strike (OI: 7,551) offers a cheaper entry, while the $260 strike (OI: 7,957) acts as a ceiling for maximum profit.

For stock traders, consider entry near $235 if the 30D MA ($187.05) holds. Set a target at $250, with a stop-loss below $225 (the put-heavy zone). The 52-week high is $242.88, so breaking through that with volume could trigger a parabolic move.

Volatility on the Horizon: Navigating AMD’s AI-Driven Ascent

The next two weeks will be critical. AMD’s options expiry on Friday (with $240 and $250 calls in focus) and the broader market’s reaction to AI news could create sharp swings. Keep an eye on the $225 put (OI: 6,788) as a psychological floor. If the stock dips there, it could attract bargain hunters.

Long-term, the 200D MA at $134.23 is a distant concern. For now, the bulls have the upper hand. With $355.5B in projected revenue from 2026–2030 and a stock price that’s already tripled since 2023, AMD’s story isn’t just about GPUs—it’s about rewriting the rules of the AI game.

Bottom line: This is a high-conviction trade. The options data, technicals, and news all point to a $250+ breakout. But don’t ignore the risks—RSI overbought levels and geopolitical headwinds could derail the rally. Position accordingly, and let the data guide your exit when the time comes.