AMD Options Signal Bullish Momentum: Calls at $260–$275 Dominate as AI Hype and Intel Woes Fuel $258+ Breakout Potential

• AMD surges 1.73% to $258.12 amid Intel supply chain woes and Ryzen 7 9850X3D launch
• Options data shows 1.05 put/call OI ratio with heavy call interest at $260–$275 strikes
• Block trades suggest institutional positioning ahead of March 2026 options expiry

Here’s the deal: AMD’s options market is screaming bullish. With calls at $260–$275 dominating open interest and block trades hinting at strategic positioning, the stock looks primed to break above $265—especially with Intel’s Q1 supply issues creating a vacuum AMD is ready to fill. Let’s break down why this is a setup worth watching.

Bullish OI Clusters and Block Trade Signals

AMD’s options chain tells a clear story. For Friday’s expiry, the top 5 OTM calls cluster between $260 (15,343 OI) and $275 (5,416 OI), while puts skew wildly bearish with $165 (11,271 OI) as the most bet-on downside level. The put/call ratio of 1.05 for open interest isn’t bearish—it’s neutral, but the distribution matters. Heavy call OI at $260–$275 suggests traders are pricing in a $265+ move, while the $165 put OI feels like a panic-level bet that’s unlikely to touch.

Block trades add intrigue. A 1,600-lot sale of AMD20260123C242.5 (expiring today) and massive March 2026 trades on $260 calls/puts indicate big players are hedging or scaling positions ahead of Q1 earnings. The $260 strike is a key inflection point—break above it, and the 200D MA at $160.10 becomes just a memory.

News Flow: Intel’s Pain Is AMD’s Gain

Intel’s Q4 supply chain warnings and AMD’s Ryzen 7 9850X3D launch aren’t just headlines—they’re catalysts. Intel’s Q1 shortages mean customers have fewer alternatives, and AMD’s 52% gross margin (Q3 2025) shows it can turn higher pricing into profits. The OpenAI partnership and MI400 AI accelerator rollout? Those are long-term plays, but they’re already boosting short-term sentiment.

Here’s the catch: If Intel’s supply issues resolve faster than expected, AMD’s premium pricing power could fade. But given the current trajectory, the stock’s 30D support at $214.79 feels like a floor, not a target.

Actionable Trade Ideas

For options traders: Buy AMD20260130C260 (next Friday expiry) at $265 strike if price holds above $256.25 (intraday low). The RSI at 74.68 hints at overbought conditions, but the MACD histogram (4.59) and bullish Kline pattern suggest momentum isn’t dying yet. For a conservative play, sell covered calls at $265 with a stop-loss below $250 (200D MA is too far to reach in a week).

Stock traders: Consider entries near $250 if price dips to the 200D MA support zone ($160.10–$163.83 is too deep). A better setup? Wait for a pullback to the 30D MA at $217.79—yes, that’s a stretch—but AMD’s 100D MA at $210.01 could act as a stepping stone. Target $275 if the 20-day Bollinger Band upper ($247.23) breaks; the middle band ($220.71) is already in the rearview.

Volatility on the Horizon

AMD’s options market is pricing in a volatile March. With block trades on March 2026 $260 calls/puts and the stock already above its 200D MA, this isn’t a "buy and forget" trade. But if the AI hype holds and Intel’s issues linger, AMD could retest its intraday high of $266.95 by expiry—and maybe push higher. Keep an eye on the 200D MA as a psychological floor; if it breaks, the puts at $220–$240 suddenly look more relevant.

Bottom line: AMD’s options and fundamentals are aligned for a short-term bullish breakout. The risks? Overbought RSI and Intel’s potential rebound. But for now, the data says this stock is on a roll—and the options market is betting on a $275+ finish.