Advanced Micro (AMD) implied volatility is moving up ahead of its earnings. The chipmaker is due to report after the closing bell today and some players in the options mart are likely bracing for a volatile move in the stock because the average daily post-earnings move over the past four quarters has been greater than 8 percent. Share volume is 25.5 million and more than double the typical. 24,000 puts and 21,000 calls traded on the stock, or 4X the typical options activity for AMD. Feb 6 puts, which are 10 percent OTM and expiring in 24 days, are being bought-to-open on ISE — 3000X so far. Total volume in the contract is more than 9000. Feb 6 calls, Feb 7 calls, Feb 7 puts and April 7 calls are among the most actives and implied volatility in AMD options is up almost 15 percent to 61.5.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.