AMD Options Signal Bullish Breakout Potential Amid $230 Call Dominance and Strategic AI News

• AMD trades at $216.67, down 2.15% from $221.42, with intraday support/resistance at $217.10–$218.31.
• Options data shows heavy call open interest at $230 and $320, while puts dominate at $190 and $180 for next Friday’s expiry.
• Recent news hints at potential Chinese market access for AMD’s MI300 chips and expanded AI partnerships.

Here’s the core insight: options market sentiment and technicals align for a bullish breakout. The stock’s short-term trend is up, but today’s price drop has created a setup where call buyers are aggressively positioning for a rebound—especially around $230. If AMD holds key support levels, this could be your entry point.

Bullish Pressure at $230 and Bearish Caution at $190

Let’s break down the options data. For next Friday’s expiry (Dec 19), the AMD20251219C230 call has 15,125 open contracts—the second-highest on the chain. That’s not just noise; it’s a signal. Big players are betting AMD will surge past $230, likely driven by optimism around its AI partnerships and potential Chinese market access. The AMD20251219C320 call (15,920 OI) is even more aggressive, suggesting some are hedging for a massive move.

On the put side, the AMD20251219P190 (16,868 OI) and AMD20251219P180 (15,138 OI) dominate. This isn’t just bearish—it’s a warning. If AMD breaks below $217.10 support, those puts could trigger a cascade of selling. The put/call ratio (0.96) is nearly balanced, but the extreme strike prices ($190, $180) show fear of a sharp drop.

Block trades add intrigue. A 1,500-lot buy of AMD20250919C165 calls in September suggests strategic positioning for a long-term rally. Meanwhile, a 1,600-lot put purchase (AMD20250919P155) hints at hedging against downside risks. These moves validate the idea that big players are preparing for both AI-driven growth and regulatory headwinds.

News Flow: A Mixed Bag for AMD’s Narrative

The recent Nvidia China approval is a double-edged sword. While it indirectly boosts AMD by signaling a potential licensing path for its MI300 chips, the immediate market reaction favored Nvidia. However, AMD’s expanded AI partnerships with HPE and Vultr—especially the Helios architecture rollout—reinforce its growth story. These collaborations could drive demand even if China access is delayed.

The Q3 earnings beat ($9.25B revenue) and analyst price targets ($279–$287) add fuel to the bullish case. But don’t ignore the risks: Oracle’s weak guidance and U.S. policy shifts could slow enterprise AI spending. AMD’s CEO clarified they have a 15% tax license for MI308 chips in China, but that’s a smaller win than hoped.

Actionable Trade Ideas: Calls for Leverage, Puts for Protection

For options traders, the AMD20251219C230 call is a high-conviction play. If AMD breaks above $218.31 resistance today, this strike could see explosive gains. For a safer bet, the AMD20251219C225 (15,125 OI) offers a more conservative entry if the stock stabilizes near $217.10.

On the downside, the AMD20251219P190 put is a heavy guardrail. Buy this if you’re hedging a long position or shorting AMD with a stop above $210.19. For stock traders, consider entry near $217.10 (support level) with a target at $225. If the stock holds above $210.19, it could retest the 30D MA at $231.85 by year-end.

Volatility on the Horizon

The coming weeks will test AMD’s resolve. A breakout above $230 could validate the call-heavy options bets and unlock analyst price targets. But a drop below $210.19 would trigger the puts we’re seeing in OI data. Keep an eye on the Commerce Department’s decision on MI300 licensing—it could be the catalyst that tips the balance. For now, the data says: position for a rally, but don’t ignore the puts at $190.