Advanced Micro Devices, Inc. (AMD), Trending Stock Report

The Computex conference that began yesterday in Taiwan is generating headlines and social media buzz for the AI world. One Bloomberg article called it a “Fight” for control.

The keynote speaker of the Conference this year was Lisa Su, CEO of Advanced Micro Devices, Inc. (AMD). She clearly painted AMD as the underdog in a battle to win a technology war against a larger foe as the company did in a similar battle against rival Intel.

From an options trader’s perspective, we don’t need to pick a side in the AI wars. AMD options are a fraction of the cost of NVDA options, and AMD announces earnings before NVDA as well.

This MDM graph compares the modeled expectations of current options prices (the orange line) to the actual movement of AMD’s stock price over the past two years. You can see that the actual behavior (the blue histogram) made big moves up and down far more frequently than the modeled options prices expect. This tells us that AMD options are relatively cheap in addition to being cheaper than NVDA options.

This Volatility Cone graph is showing us that volatility expectations (the yellow dots) are all below the average historical volatility over the last two years. To learn more about the Volatility Cone, click here. This graph confirms that AMD options are relatively inexpensive.

AMD may be in a race to dominate AI, but option traders only need to care about the first law of making a profit: “Buy low, Sell High.” The hype around AI may bring more buyers and AMD tends to make big moves around earnings announcements. Right now, we can buy options that expire after AMD’s scheduled earnings report on the 30^th of July at a discount to their value.

Be sure to read the ODDS Online Daily Trade Idea report to get the details of our trade ideas AMD options today.