AMD Options Signal Bullish Bias: Key Strikes and Block Trades Point to AI-Driven Breakout Potential

• AMD trades at $205.02, up 0.17% with volume surging to 13.7M shares.
• Options market shows 0.97 put/call open interest ratio, favoring calls at extreme OTM strikes like $300.
• Block trades on $200 puts and new MI400 AI chips hint at strategic positioning ahead of earnings.

Here’s the takeaway: AMD’s options activity and technicals are painting a clear picture. While short-term indicators like MACD and RSI suggest consolidation, the long-term bullish trend—backed by 54% gross margins and AI-driven product launches—points to upside potential. Let’s break down why traders should watch $215-$220 call strikes and $200 put liquidity closely.

Options OI Reveals Bullish Skew, But Puts Signal Caution at Key Levels

The options market isn’t whispering—it’s shouting. For this Friday’s expirations, the AMD20260116C215 call ($215 strike) has 9,991 open contracts, while the AMD20260116P200 put ($200 strike) leads puts with 12,170 OI. That’s not just noise: it’s a bet that AMD could test Bollinger Bands’ upper channel ($226.37) or defend its 30-day support at $214.85.

But don’t ignore the puts. A block trade of 700 AMD20260116P200 puts ($200 strike) moved $152,600 on Jan 9. That’s institutional hedging—positioning for a dip if the stock stumbles near its 200-day MA ($165.32). The risk? If AI hype underperforms, those puts could trigger a short-term selloff.

AI Innovations and 54% Margins Fuel Conviction in AMD’s Long-Term Upside

Lisa Su’s comments about AI reshaping hiring, plus the MI400 GPU launch, aren’t just corporate fluff. They’re catalysts. The Helios platform’s 72-GPU architecture directly challenges Nvidia’s dominance, and 54% non-GAAP margins show AMD isn’t just surviving—it’s thriving.

But here’s the catch: options sentiment is split. Retail traders are buying calls at $215-$230, betting on a post-earnings pop. Institutional players are buying puts at $200, hedging against a macro-driven pullback. The truth likely lies in between—but the AI narrative gives bulls a clear edge.

Strategic Entry Points: Calls on AI Catalysts, Dips to 203 Offer Value

For options traders:

• AMD20260116C215 (Jan 16 $215 call): Buy if AMD breaks above $207.30 (intraday high). Target: $220 strike.
• AMD20260116C220 (Jan 16 $220 call): Aggressive play if the MI400 buzz accelerates.
• AMD20260116P200 (Jan 16 $200 put): Hedge if the stock dips below $203.07 (intraday low).

For stock buyers:

• Entry near $203 if support holds. Target $215 (30-day resistance) with a stop-loss below $200.
• Aggressive entry at $207.30 if the 200-day MA ($165.32) looks like ancient history.

Volatility on the Horizon: Balancing AI Optimism with Near-Term Volatility

AMD isn’t a straight-line trade. The MACD histogram (-0.037) and RSI (56.95) suggest sideways action ahead of a breakout. But with $300 calls (AMD20260116C300) seeing 28,748 OI, the market isn’t pricing in a 50% move—yet.

Bottom line: Position for a $215-$220 pop if AI adoption metrics surprise to the upside. But keep $200 puts handy. This stock isn’t going straight up—it’s going to dance. And right now, the choreography favors bulls.