AMD Options Signal Bullish Breakout Potential: Focus on $225–$250 Calls and Key Support Levels

• Advanced Micro Devices (AMD) surges 0.47% to $216.26 amid a $1B Vultr AI deal and a $290 price target from TD Cowen.
• Options data shows heavy call open interest at $225–$250 strikes, while puts dominate at $200 and below—hinting at a volatile week ahead.
• Technical indicators and block trades suggest a critical test of $230 resistance and a potential short-term rebound from $204 support.

Here’s the core insight: AMD’s options market is pricing in a high-probability upside breakout this week, driven by a mix of AI-driven optimism and strategic positioning. With the stock hovering near key technical levels and a bullish news backdrop, traders need to watch the $225–$250 call strikes and $200 put level like a hawk. Let’s break it down.

Bullish Calls Dominate, But Puts Signal Caution at $200

The options chain tells a story of divided sentiment. For this Friday’s expiration, call open interest peaks at $225 (OI: 19,586) and $250 (OI: 9,941), while puts cluster heavily at $200 (OI: 10,739) and $145 (OI: 7,322). This suggests two camps: one betting on a push above $230 (the 30D support/resistance zone), and another hedging against a sharp drop below $200. The put/call ratio of 0.94 (favoring calls) reinforces the bullish tilt, but the heavy put OI at $200 acts as a warning—don’t ignore the risk of a pullback if earnings or macro news disappoint.

Block trades add intrigue. A 1,500-lot buy of AMD20251019C165 (a deep-in-the-money call) in early October hints at long-term bullish positioning. Meanwhile, a 1,600-lot AMD20250919P155 put purchase in September suggests some hedging ahead of earnings. These moves signal conviction but also caution—key for traders to balance.

Vultr Deal and Analyst Upgrade Fuel AI Optimism

The $1B Vultr AI cluster deal is a game-changer. Using 24,000 MI355X GPUs, this project cements AMD’s role in the AI infrastructure boom—a sector projected to hit $300B by 2030. Pair that with TD Cowen’s $290 price target (35% upside) and AMD’s Q3 $9.2B revenue beat, and you’ve got a recipe for short-term euphoria. But don’t get carried away: the stock’s post-earnings dip and mixed segment results (data center up 22%, embedded down 8%) show cracks in the narrative. Investors are betting on next-gen MI450/MI400 chips to close the gap with Nvidia, but execution risks remain.

Actionable Trade Ideas: Calls for the Breakout, Puts for the Safety Net

For options traders, the AMD20251205C225 (this Friday’s $225 call) and AMD20251212C230 (next Friday’s $230 call) are prime candidates. Both strikes align with heavy open interest and the 30D support/resistance zone ($204.99–$206.20). If the stock breaks above $218.2 (today’s high), these calls could see explosive gains. For downside protection, the AMD20251212P200 put offers a safety net if the $200 level cracks—a scenario that could play out if macro fears resurface.

Stock traders should consider entry near $204.99 (30D support) with a target at $230 (the upper end of the 30D support/resistance range). A break above $218.2 validates the bullish case, while a drop below $204.99 triggers a reevaluation. Use the Bollinger Bands (current price near the lower band at $195.32) as a psychological floor—AMD’s RSI at 40.29 suggests oversold conditions, but a rebound isn’t guaranteed.

Volatility on the Horizon: Balancing Bullish Catalysts and Technical Risks

The coming week is a tightrope walk. AMD’s AI momentum and institutional block trades point to a potential $230+ move, but the crowded $225–$250 call strikes could lead to a “buy the rumor, sell the news” scenario. Traders must stay nimble: lock in profits if the stock hits $230, and keep a close eye on the $200 put level. The Helios AI system launch and MI450 roadmap are long-term tailwinds, but short-term volatility is inevitable. In this high-stakes environment, patience and discipline will separate winners from the noise.