AMD Options Signal $250 Call Battle: How Whale Moves and AI News Shape Risk-On/Off Plays

• AMD’s stock slumped 3.7% to $221.79, breaking below key support levels but still above its 200D MA of $147.
• Options data shows a 10:9 call/put open interest imbalance, with heavy call OI at $250–$300 and puts at $200–$220.
• Block trades hint at big money positioning: 1,500 calls bought at $165 strike and 1,600 puts at $155.

Here’s the thing: AMD’s price action looks like a storm cloud with a silver lining. The short-term technicals scream caution—RSI at 35.79, MACD histogram turning negative—but the long-term story is still bullish. Options traders are hedging their bets, and the news flow? It’s a mixed bag of AI optimism and sector jitters. Let’s break it down.

The Options Chessboard: Calls vs Puts and Whale Moves

AMD’s options market is a tug-of-war between bulls and bears. This Friday’s expiry sees 22,675 open interest at the $260 call and 15,024 at the $220 put—strikes that bracket the current price. That’s not random. It’s like a crowd betting on a tight race: if AMD cracks $260, the bulls win; if it falls below $220, the bears take the prize.

But here’s the twist: the block trades tell a subtler story. The AMD20251017C165 call (expiring October 17) saw 1,500 contracts bought at $165 strike—way below current price. That’s a classic "floor sweep" move, often used to lock in support. Meanwhile, the AMD20250919P155 put (expiring September 19) had 1,600 puts bought at $155. Big money’s hedging against a deeper selloff, but not a catastrophic one.

The risk? If AMD can’t hold above $225.89 (lower Bollinger Band), the $200–$220 puts could trigger a cascade of selling. But if it rallies above $238.62 (30D support), the $250–$260 calls might ignite a short-covering rally.

News That Could Tip the Scales

AMD’s fundamentals are a double-edged sword. On one hand, the Cisco-Humain joint venture and Compal’s liquid-cooled servers are huge wins for AI infrastructure. These partnerships validate AMD’s role in the next-gen data center race. And let’s not forget: ARM and AMD are eating Intel’s lunch in the CPU market.

But the Cloudflare outage and sector-wide correction are real headwinds. The $18.8M OpenHands funding and David Tepper’s bullish bet are positive, but they’re fighting against a tide of macro anxiety. Citi’s "top chipmaker" label helps, but only if investors ignore the PHLX Semiconductor Index’s 5% drop.

Here’s the key: the news supports AMD’s long-term narrative but doesn’t fix today’s volatility. The market is pricing in AI growth while discounting short-term risks—a classic tug-of-war.

Actionable Plays: Calls, Puts, and Precision Entries

Let’s get tactical. For options traders, the AMD20251017C250 call (expiring October 17) is a high-conviction play if AMD breaks above $238.62. The $250 strike has 4,636 open interest next week, meaning there’s liquidity to ride a breakout. If you’re bearish, the AMD20251017P220 put (same expiry) offers downside protection below $220.91.

For stock buyers, consider entries near $225.89 (lower Bollinger Band) with a target at $240. That’s where the 30D MA and 200D MA converge. A stop-loss below $220.91 would protect against a breakdown.

Short-term traders could also sell the AMD20251017P220 put if AMD holds above $225.89. The $220 strike is a psychological floor, and the 15,024 open interest this week means there’s demand for bearish bets.

Volatility on the Horizon: Balancing Bullish Hope and Bearish Caution

AMD’s story isn’t just about numbers—it’s about momentum. The options data shows a market bracing for a fight: bulls are stacking up at $250, bears at $200. The block trades suggest big players are hedging but not fleeing.

The next 72 hours will be critical. If AMD can stabilize above $225.89 and rally to $238.62, the $250 calls could become a catalyst for a rebound. But if the $220–$200 puts dominate, the stock might test its 200D MA.

Bottom line: This is a high-stakes chess game. The AI news gives AMD a long-term edge, but the short-term volatility demands discipline. Whether you’re buying calls, selling puts, or waiting for a clearer trend, the key is to align your strategy with the price action—not just the headlines.