AMD Options Signal Bullish Breakout: $300 Call OI and Block Trades Point to AI-Driven Rally

• AMD surges 6.26% to $237.60, driven by TSMC’s earnings beat and a Wells Fargo upgrade to $345
• Options data shows heavy call open interest at $300 and $250 strikes, with block trades selling 2,995 contracts at $222.5 and $232.5
• Put/call ratio at 0.99 suggests bullish sentiment, but $200 support is critical to watch

AMD’s stock is on fire today—up 6.26% to $237.60—as the AI hype train gains steam. But what’s really interesting isn’t just the price action. It’s the options market whispering about a potential $300+ breakout. Let’s break down why this could be a golden opportunity for traders who know where to look.

Bullish OI and Block Trades: A Playbook for Breakouts

The options chain is screaming bullish. Call open interest peaks at $300 (28,875 contracts) and $250 (23,693), while puts dominate at $200 (21,485). This isn’t random—it’s a sign of heavy positioning for a rally. Think of it like a crowd gathering at the top of a hill, ready to push a boulder downhill. If AMD breaks above $238.35 (today’s high), those $300 calls could see explosive demand.

But here’s the twist: block trades are selling calls at $222.5 and $232.5. That’s not just hedging—it’s a signal that big players are locking in profits or shorting volatility. If you’re a retail trader, this means two things: 1) The $222.5–$232.5 range is a key battleground, and 2) A breakout above $238.35 could trigger a cascade of call buying.

News-Driven Narrative: AI Wins Outweigh Tariff Risks

The headlines are all about AMD’s AI momentum. TSMC’s earnings beat, a $345 price target from Wells Fargo, and a $120B OpenAI deal are fueling the fire. But let’s not ignore the 25% tariffs on AI chips—this could pressure margins. However, AMD’s $5.4B free cash flow and 35.6% YoY revenue growth make it a cash machine. Investors are betting the AI demand will outpace short-term policy risks.

Here’s the kicker: institutional insiders sold 161,558 shares in 90 days. That’s not a red flag—it’s a green light. When big players trim positions, it often means they’re confident the stock will keep climbing. The real risk? If AI demand slows or tariffs hit harder than expected, the $200 support level (lower Bollinger Band) becomes a critical test.

Actionable Trade Ideas: Calls, Puts, and Price Levels

For options traders, the AMD20260123C250 call (expiring Friday) is a no-brainer. With 2,639 contracts in open interest, it’s a liquid strike that could benefit from a breakout. If you’re bearish, the AMD20260123P200 put offers downside protection, especially if AMD dips below $227.36 (today’s low).

Stock traders should consider entry near $230 if support holds. Set a target at $250 (aligning with the heavy call OI) and a stop-loss at $215 (just below the 30D support). Why $230? Because the 200D moving average at $167.42 is a distant memory—AMD is in a long-term bullish trend.Bullish Trends Ahead: AMD’s AI Momentum Could Fuel a $300+ Rally

The stars are aligning for AMD. A $300 call OI, block trades at key strikes, and AI-driven news all point to a breakout. But don’t ignore the risks: tariffs and insider sales could create volatility. For now, the technicals and sentiment are bullish. If AMD holds above $227.36, the next leg up could be on the cards. This isn’t just a stock—it’s a bet on the future of AI. And right now, the future looks golden.