AMD Options Signal Bullish Momentum: $165–$170 Call OI and AI-Driven Catalysts Point to Strategic Entry Zones

• AMD trades at $160.46, down 0.5% from $161.27, with a short-term bullish Kline pattern and long-term bullish trend.
• Call/put open interest ratio of 0.84 highlights aggressive call buying at strikes like $165 and $170, while block trades signal institutional positioning.
• Upcoming AI ecosystem announcements and $10B HUMAIN collaboration align with technicals, suggesting a potential $165–$170 breakout.

Core Insight: AMD’s options market and technicals converge on a bullish narrative, with heavy call open interest at key strikes and AI-driven news flow amplifying upside potential. Traders should focus on $165–$170 call options and strategic long entries near $160.50.Decoding OTM Options and Whale Trades: A Bullish Imbalance

AMD’s options chain reveals a stark call/put imbalance, with the top OTM call open interest concentrated at $165 (37,347 contracts) and $170 (28,966) for Friday expiration. This contrasts with put open interest at $152.5 (9,977) and $155 (9,166), reflecting a market skewed toward upside conviction. The 0.84 call/put open interest ratio (calls: 2,031,514; puts: 1,707,689) underscores this bias, suggesting institutional positioning for a potential $165–$170 breakout.

Notable block trades reinforce this narrative. A 1,500-contract purchase of AMD20251017C165 (expiring Oct 17) and a 1,600-contract buy of AMD20250919P155 (expiring Sept 19) indicate strategic hedging and directional bets. The former suggests a hedge against a near-term rally, while the latter implies bearish positioning below $155. Traders should monitor the $165 strike as a critical inflection point—break above it could trigger a cascade of call-covered calls and institutional follow-through.

News Flow: AI Ecosystem and Strategic Collaborations Fuel Bullish Sentiment

AMD’s recent news flow aligns with the options-driven bullish case. The $10B HUMAIN AI collaboration and open AI ecosystem vision directly tie to long-term revenue growth, while the EPYC 4005 series and RDNA 4 architecture announcements strengthen its competitive positioning. Additionally, the $6B share repurchase program and Nokia’s adoption of EPYC processors in cloud infrastructure signal financial discipline and enterprise demand.

However, the divestiture of ZT Systems and mixed Q2 2025 guidance (pending earnings) introduce short-term volatility. Investors must weigh these factors against the AI-driven narrative. The key takeaway: AMD’s product roadmap and strategic partnerships are amplifying the bullish case, but earnings volatility and sector-wide AI hype could create short-term noise.

Actionable Trading Opportunities: Calls, Longs, and Strategic Entries

For options traders, the AMD20251017C165 (Friday expiration) and AMD20251010C170 (next Friday) are prime candidates. The $165 call offers leverage if AMD closes above its 30D support/resistance zone (160.68–161.28), while the $170 call benefits from a potential breakout above the 200D MA (127.04). Both strikes align with Bollinger Band upper bounds (167.30) and RSI (69.90) suggesting overbought momentum.

For stock traders, consider entry near $160.50 (current price) with a stop-loss below the 30D MA (162.78). Target zones include $165 (Bollinger Band upper) and $170 (next key resistance). A break above $165 could trigger a retest of the 167.30 upper band, while a close below $159.96 (intraday low) would validate bearish block trade positioning.

Volatility on the Horizon: A Bullish Outlook with Caution

AMD’s technicals, options activity, and news flow coalesce into a compelling bullish case. The 30D MA (162.78) and 200D MA (127.04) divergence, coupled with a 69.90 RSI, suggests momentum is intact. However, the 0.84 call/put ratio and heavy block trades at $165 and $170 imply a high probability of a $165–$170 breakout. Traders should balance aggressive call options with conservative long entries near $160.50, using the 30D support/resistance zone as a dynamic stop-loss. With AI-driven catalysts and institutional positioning aligned, AMD’s next move could redefine its 2025 trajectory.