Options Data Show Adding Of Long Positions In Advanced Micro Devices, Inc. (NYSE:AMD)
Shares of Advanced Micro Devices, Inc. (NYSE:AMD) went up by nearly 4% in Monday’s trading session. This firm that deals in semiconductors business and has exceeded the projected scores of analysts as it has performed better in the last six of the eight quarters. The option players are using this opportunity and adding long positions ahead of its results. As per the option data 33,000 call contracts have changed hands and have contributed significantly to intraday call volume.
Once Advanced Micro Devices, Inc. (NYSE:AMD) releases their third quarter earning, the October 4.50 call will cease to exist. As per reports, Advanced Micro Devices, Inc. (NYSE:AMD) is all set to give details of its earnings after close on October 17th, 2013. AMD had a volatile run and it saw both drastic rise and fall of share price. In the last quarter itself, the stock dropped by whopping 13.2% after releasing the details of its earnings. In sharp contrast, the shared popped up by 11.4% after declaring the earnings for its January quarter. Hence, there have been a lot of ups and down for this company and given the boom that it has been experiencing of late, a lot of investors are waiting for the release of the earning reports for this quarter.
If Advanced Micro Devices, Inc. (NYSE:AMD) fails to break above $4.50 by the closing bell on Friday, the call buyers may end up losing 100% of the modest premium that was paid. Currently, the company is shorted heavily because 22% of the currently available float has been sold short.
Analyst Betsy Van Hees is of the opinion that the boost in the demand for gaming consoles is likely to impact the growth of AMD as the prices can go down even higher and the company can find an increase in its revenue.