AMD is off 10 cents to $3.50 and options order flow seems somewhat bearish, with about 15,000 puts and 3,200 calls traded on chipmaker so far. The flow includes a multi-exchange sweep of 8,225 Jan 3 puts on AMD for 21 cents per contract. Data from ISE is reporting an opening buyer for a customer account. 12,420 Jan 3 puts now traded on the stock against 4,364 in open interest. The contract is 14.3 percent OTM and expiring in 116 days. 30-day ATM implied vols in AMD are edging up 6 percent to 56. The stock is down 56.2 percent since March and mired near 52-week lows amid a grim outlook for the PC industry and chip sales. Today’s increased activity in Jan downside puts seems to reflect concerns about a move to less than $3 per share by early-2013.
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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.