Advanced Micro Devices closed at USD 503.57, up 1.58%. The session featured significant premium harvesting in long-dated options, with the largest trades being a $5.72 million out-of-the-money call sale and a $5.15 million out-of-the-money put sale, reflecting a market view that favors income generation over directional conviction for extreme moves.
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Options Indicators
AMD’s implied volatility is 94.03%, and with an IV percentile of 99.20%, current option volatility is firmly in an elevated regime. Combined with an IV/HV ratio of 1.33, this suggests implied volatility is running meaningfully above historical realized volatility, indicating that AMD options are priced expensively and that the market is embedding very rich premium levels for near-term risk. The Call/Put volume ratio is 1.86.
Large Trades
A CALL sale worth $5.72 million was the largest single-leg trade of the day, with 2,000 contracts sold at the 650.0 strike expiring on 2026-09-18. With AMD referenced at $503.57, this call sits out of the money, making it a bearish income-oriented position that likely reflects a view that upside will remain capped well below $650.0 through expiration. Strategically, selling this far-out-of-the-money call suggests the trader is collecting premium while expressing skepticism about a major rally over the longer term.
A PUT sale worth $5.15 million was the second highlighted large trade, with 1,250 contracts sold at the 400.0 strike expiring on 2026-12-18. Given the current stock reference of $503.57, the put is out of the money, so this is a bullish to moderately constructive trade that benefits if AMD stays above $400.0 into expiration. The strategic intent is consistent with premium collection and a willingness to take downside risk at a lower level, implying the seller is comfortable with AMD holding above that strike rather than expecting a deep selloff.
Overall large-trade sentiment leaned slightly bearish, with total bullish flow at $5.49 million versus $6.33 million in bearish flow, leaving a net difference of $0.84 million to the bearish side. The directional read is therefore modestly bearish, but not aggressively so. That tone is driven primarily by the largest trade of the session, the sizable out-of-the-money 650.0 call sale, which outweighed the also-substantial bullish 400.0 put sale; together, the flow suggests traders were more interested in harvesting premium while fading extreme upside than in positioning for a powerful breakout, even though some participants still showed confidence in downside support.
Strategy Reference
For traders seeking to sell premium with a low probability of assignment, selecting a short call at a strike like 650.0, which is over 29% out-of-the-money relative to the current price, or a short put at 400.0, over 20% out-of-the-money, can be effective; those preferring defined risk and lower margin requirements could consider implementing these as part of a credit spread strategy, such as a bear call spread or a bull put spread.