Advanced Micro Devices closed at $512.50, up 1.65%.

Institutional options activity in AMD flashed an unmistakably aggressive tone, led by two massive dual long call packages totaling $18.78 million in net premium. The largest trade targeted strikes as high as $1,120, underscoring a high-conviction bet on a dramatic medium- to long-term advance rather than a modest drift higher.

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Options Indicators

AMD’s implied volatility is 54.74%, and with an IV percentile of 18.33%, current option pricing sits in the low end of its recent historical range, indicating volatility is relatively subdued and options are cheaply priced. The IV/HV ratio of 1.16 suggests implied volatility is running modestly above realized volatility, so while the market is assigning some premium over actual recent movement, overall pricing still appears relatively inexpensive rather than stretched.

The Call/Put volume ratio is 1.29.

Large Trades

A directional double-call buying package with a net debit of $11.00 million was the largest displayed trade, consisting of long 1,497 Jan. 21, 2028 $1120 calls and long 1,497 Mar. 19, 2027 $700 calls. This is a same-direction dual long call combination rather than a spread, signaling an aggressive upside volatility bet through two out-of-the-money call purchases across different expirations. With both strikes far above the $512.50 reference stock price, the trader appears to be positioning for a substantial bullish move over the medium to long term, paying premium upfront for convex upside exposure rather than seeking income.

Another directional double-call buying package followed with a net debit of $7.78 million, pairing long 1,500 Sep. 17, 2027 $1020 calls with long 1,500 Mar. 19, 2027 $780 calls. Like the first trade, this is a same-direction dual long call structure, expressing a high-conviction bullish view tied to the possibility of a large upside move rather than a capped spread strategy. Both legs are also out of the money relative to the $512.50 reference price, which reinforces the idea that the buyer was targeting significant appreciation and elevated upside optionality over time.

Overall, the bulk-order flow leans bullish for AMD. The most prominent displayed trades were both large net-debit call-buying combinations aimed at capturing a major upside move, and the broader large-trade mix also shows bullish participation outweighing bearish activity. While there were some premium-selling and moderately bearish structures elsewhere in the tape, the standout positioning was concentrated in long upside optionality, suggesting institutional sentiment is positive and geared toward a meaningful advance rather than a range-bound outlook.

Strategy Reference

For traders unwilling to post the full margin of deep out-of-the-money long calls, a bull call spread such as buying the Mar. 2027 $700 call and selling the Mar. 2027 $1020 call reduces net debit and caps upside risk, while a conservative premium seller could target the $300 put strike given its notably low assignment probability relative to current price and subdued IV percentile.