AMD Options Signal Bullish Bias: Calls at $225–$220 Dominate as Puts at $185 Hedge Volatility – Here’s How to Play It

• AMD’s Q4 revenue smashed estimates at $6.8B, with 2026 guidance raised to $32B.
• Options data shows heavy call open interest at $225 and $220, while puts at $185 act as a volatility hedge.
• Stock price sits near 30D SMA at $221.26, with RSI at 44.37 hinting at potential rebound.

Here’s the takeaway: AMD’s options market is leaning bullish, but with a cautious edge. The stock’s 0.4% intraday gain today masks a volatile path—its 30D Bollinger Bands stretch from $199 to $227.63, and the MACD (-5.3) still trails the signal line (-4.46). Yet the call/put open interest ratio (0.97) suggests buyers aren’t backing down. Let’s break it down.

Bullish Calls at $225–$220 Signal Conviction, But Puts at $185 Tell a Cautionary Tale

The options chain is a chessboard. Calls at $225 ($OI: 8,850) and $220 ($OI: 7,040) dominate this Friday’s expirations, while next Friday’s $240 call ($OI: 6,432) hints at longer-term optimism. That’s not just noise—it’s a crowd betting on a breakout above the 30D SMA at $221.26. But don’t ignore the puts: $185 puts ($OI: 14,491) and $135 puts ($OI: 10,047) next week act like seatbelts for a rollercoaster ride.

Block trades add intrigue. A 1,500-contract AMD20251017C165 call buy in late October suggests big money was already bullish. Yet the recent AMD20250919P155 put purchase (1,600 contracts) shows hedging—like a driver gripping both the wheel and the emergency brake.

News Flow Fuels Bullish Momentum, But Risks Lurk in the EU

AMD’s Q4 win (45% data center growth, Ryzen 8000 launch) and $2.5B CloudSoft acquisition are tailwinds. The stock’s 12% post-earnings surge and $2B buyback program scream "confidence." But the EU antitrust probe and short-seller activity (noted in news) could trigger a pullback. Think of it like a storm on the horizon—visible but not yet touching shore.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders:

• Bullish Play: Buy AMD20251226C225 (this Friday’s $225 call) if price breaks above $221.26. Target $235 (Bollinger Upper Band) with a stop below $213.31 (intraday low).
• Bearish Hedge: AMD20251226P185 puts offer downside insurance, given the 14,491 OI. Ideal if EU worries escalate.

For stock:

• Entry: Consider buying near $213.31 (intraday low) if RSI (44.37) rebounds.
• Target: Push toward $227.63 (Bollinger Upper Band) if 30D SMA ($221.26) holds.
• Stop: Below $213.31 invalidates the bullish case.

Volatility on the Horizon: Balancing Bullish Momentum and Regulatory Risks

AMD’s story is a tug-of-war. On one side: AI demand, cloud partnerships, and a $32B revenue target. On the other: EU scrutiny and supply chain jitters. The options market’s call-heavy setup suggests conviction, but don’t ignore the puts—they’re a reminder that volatility isn’t just a friend, it’s a foe. For now, the 30D SMA acts as a psychological line in the sand. Cross it, and the bulls might just run. Stay below, and the puts at $185 could turn into a lifeline.

Bottom line: This is a stock with rocket fuel and seatbelts. Your job? Decide which you want to use.