AMD Options Signal $260 Bullish Battle: How to Play the AI Chip Giant's Volatile Crossroads

• AMD’s price plunged 4.7% to $213.08 amid heavy volume, testing key support/resistance levels.
• Options data shows 25,057 open interest at the $260 call (Friday expiry) vs. 13,064 at the $200 put—hinting at a high-stakes price war.
• Block trades like AMD20250919C165 (1,500 calls bought) suggest institutional bets on a rebound.
• Positive AI partnerships and market share gains clash with Cathie Wood’s AMD stake cut—creating a tug-of-war for sentiment.

Here’s the thing: AMD is at a crossroads. The stock’s 4.7% drop today has traders scrambling to decode the options chaos. But the data tells a clearer story—a battle for $260 is brewing, with both bulls and bears digging in. Let’s break it down.

The options chain is screaming. For Friday expiry, the $260 call (25,057 open interest) is the most crowded trade, while the $200 put (13,064 OI) anchors the bearish side. This isn’t just noise—it’s a vote. Call buyers are betting AMD will rebound from its 52-week low (lower Bollinger Band at $224.26), while put buyers fear a breakdown below $209.38 (today’s intraday low).

But here’s the twist: The block trade AMD20250919C165 (1,500 calls bought at $165 strike) suggests smart money is hedging a short-term rebound. Meanwhile, the AMD20250919P155 put block (1,600 contracts) hints at a deeper bearish conviction. This isn’t just retail frenzy—it’s a chess match.

AMD’s headlines are glowing. Super Micro’s AI server launch, France’s supercomputer deal, and the $100B AI ambition all scream "buy." But Cathie Wood’s ARK funds trimming AMD stakes adds a wrinkle. The options market isn’t buying the "all-in" narrative.

Think of it like a restaurant with a Michelin star but a Yelp review war. The RSI at 36.6 (oversold territory) and MACD histogram at -5.07 (bearish divergence) suggest the stock is fighting a losing battle for now. The bulls need more than good news—they need a catalyst to break above the 30D support/resistance range ($237.64–$238.63).

Short-Term Call Play: Buy the AMD20251017C250 (Friday expiry) if AMD closes above $238.63. Why? The 30D moving average at $241.50 is a psychological hurdle. A close above $238.63 could trigger a rebound toward $260, where heavy call OI is waiting.

Put Spread for Downtrend Protection: Sell the AMD20251017P210 and buy the AMD20251017P200 (both Friday expiry). If AMD breaks below $209.38, the $200 put (13,064 OI) could become a magnet. This spread caps risk while profiting from a potential $200 support test.

Stock Entry Strategy: Consider buying AMD near $237.64 (30D support) if it holds. Target $260 as a short-term goal, but set a stop-loss at $209.38. If it breaks there, pivot to the put spread above .

The next 72 hours will be critical. AMD’s price action against the $238.63 support line will determine whether the $260 call buyers win or the $200 put sellers take control. Keep an eye on the AMD20251010P160 block trade (1,000 puts) as a potential bearish signal.

But don’t forget the big picture: AMD’s AI partnerships and market share gains are real. If the stock can stabilize above $224.26 (lower Bollinger Band), the long-term bulls (and that $300 call OI) might still have the last laugh. For now, though, it’s a high-stakes game of chicken at $260.