AMD Options Signal Bullish Momentum: Key Strikes and Block Trades Point to $260+ Upside

• AMD’s price dropped 4.7% to $246.75, but call options at $260 ($OI: 28,509) and $250 ($OI: 23,714) show heavy bullish positioning.
• Block trades like AMD20251017C165 ($991,500 turnover) hint at institutional bets on near-term gains.
• Record Q3 revenue, Ryzen 9000 launch, and a $1.2B acquisition signal strong fundamentals, but EU antitrust risks linger.

Here’s the core insight: AMD’s options market is pricing in a sharp rebound above $250, with heavy call open interest at key strikes and block trades amplifying the bullish case. While technicals and news support upside, the EU probe adds a wildcard. Let’s break it down.Bullish Sentiment Locked in OTM Calls, Block Trades Signal Big Bets

AMD’s options chain tells a clear story: traders are piling into calls at $250–$270, especially for Friday expiration. The $260 strike alone has 28,509 open contracts, nearly double the $220 put OI (9,086). This isn’t just noise—it’s a vote of confidence that AMD will reclaim its $260+ levels.

But here’s the twist: the block trade AMD20251017C165 (1,500 contracts, $991,500 turnover) suggests big players are hedging or scaling up ahead of the October 17 expiration. Combine that with the $300 call OI (15,176) for next Friday, and it looks like institutional money is preparing for a multi-week rally.

The put side isn’t ignored—$220 puts (11,658 OI) and $150 puts (11,367 OI) show some downside protection, but the put/call ratio (0.899) still favors bulls. That said, the EU antitrust probe could shake things up if it escalates.

Company News Fuels Optimism, But Risks Remain

AMD’s Q3 revenue ($7.2B) and Ryzen 9000 launch are textbook catalysts. The 5.7GHz boost clocks and AI acceleration in new CPUs could drive gaming and data center sales, while the Xperi acquisition adds IP firepower for AI chips. Throw in a $2B buyback and a new CFO with NVIDIA experience, and you’ve got a recipe for shareholder love.

But let’s not ignore the EU investigation. While it’s early days, antitrust actions can drag down tech stocks fast. The market’s pricing in growth, but if regulators crack down, even strong fundamentals might not save the stock.

Actionable Trades: Calls for Friday, Stock for Breakouts

For options traders, the AMD20251017C260 (Friday expiration) is a prime play. If AMD breaks above $250 (its 30D support at $236.42), this strike could see explosive gains. For a longer-term bet, the AMD20251024C300 (next Friday) offers leverage if the rally continues past $270.

Stock buyers should eye $246.75 as a key entry. If the price holds above the 30D moving average ($234.70), target $260 as a first goal. A break above $269.32 (Bollinger Upper Band) would validate the bullish case. Stops should sit below $236.42 (30D support) to protect against a breakdown.

Volatility on the Horizon: Balancing Bullish Momentum and Regulatory Risks

AMD’s setup is a classic case of "strong hands, weak hands": the options data and news flow scream upside, but the EU probe adds a layer of uncertainty. The key will be watching volume and the $250–$260 price corridor. If AMD holds here, the $300 call OI could ignite a parabolic move. If it cracks below $236.42, the 200D support ($111.71–$115.43) becomes a distant concern.

Bottom line: This is a high-conviction trade for bulls, but keep a close eye on the EU headlines. The options market is pricing in a rebound, but nothing’s guaranteed in a sector as volatile as semiconductors. Play it smart—hedge with a small put position or tight stops, and let the data guide your next move.