AMD Options Signal Bullish Bets at $320 and $260—Here’s How to Play the AI Chipmaker’s Volatility

• AMD trades at $214.22, down 3.26% from $221.43 after a volatile session with intraday swings from $209.06 to $222.49.
• Options market shows heavy call open interest at $320 (next Friday) and $260, while puts at $180 and $100 hint at downside caution.
• Block trades in October/September options suggest institutional positioning ahead of potential catalysts.

The core insight? AMD’s options activity and technicals paint a mixed but actionable picture: bulls are betting on a $260+ rebound, while bears eye a test of $200. Here’s how to navigate the crossroads.Bullish Calls at $320 and Bearish Puts at $180: What’s the Play?

AMD’s options chain is split. For next Friday’s expirations, the AMD20251219C320 call has 15,814 open contracts—the highest of any strike—while the AMD20251219P180 put has 18,128 open contracts. This suggests a tug-of-war: big money is hedging a potential $180 support break but also eyeing a $320+ pop if AI demand accelerates.

The MACD (-2.68) and RSI (65.28) hint at short-term exhaustion, but the 30-day moving average ($230.42) still looms as resistance. Block trades like the AMD20251017C165 (1,500 contracts bought for $991,500) and AMD20250919P155 (1,600 puts bought) show prior positioning for volatility, likely tied to earnings or geopolitical shifts.

News vs. Options: Can AMD’s AI Ambitions Outpace Risks?

Recent headlines are a mixed bag. The White House’s China-Nvidia deal and Oracle’s accounting issues cast shadows on AMD’s "second-source" thesis. Yet Q3 results ($9.2B revenue) and a $300 price target from Barclays highlight AI growth potential. The key question: Will investors prioritize AMD’s EPYC server dominance and Ryzen AI expansion, or fear Nvidia’s software edge (CUDA vs. ROCm)?

Options sentiment leans neutral. The put/call ratio (0.96) suggests balanced bets, but heavy call OI at $320 implies some are banking on a breakout if AI infrastructure spending rebounds. The risk? If Oracle’s budget cuts spread, the $200 (lower Bollinger Band) could crumble.

Actionable Trades: Calls, Puts, and Precision Entries

For options traders, consider:

• AMD20251219C260 (next Friday, OI: 13,738): Buy if AMD closes above $225 today. Target: $260 break-even in 7 days. Stop-loss: $240.
• AMD20251219P210 (next Friday, OI: 13,741): Hedge downside risk if the stock dips below $215. Target: $200 support holds.

For stock traders, watch these levels:

• Entry near $210–$215: Buy if AMD rebounds above the 30-day support ($220.54). Target: $230 (50-day MA) first, then $250.
• Short near $225: Sell into strength if the stock tests the 30-day MA ($230.42). Stop-loss: $235.

Volatility on the Horizon: Balancing AI Hype and Reality

AMD’s future hinges on two forces: its ability to scale AI chip sales (MI300, Instinct MI350) and the durability of its software ecosystem. The options market is pricing in a 30% move either way by December 19. If the stock holds above $200, the $260 call bets could pay off. If it breaks below $197 (lower Bollinger Band), the puts at $180 might ignite a short squeeze.

Bottom line: This is a high-stakes chess match. Play it with clear stops and a focus on the $220–$230 corridor. The AI supercycle isn’t over yet—and neither is AMD’s rally.