Advanced Micro Devices closed at USD 482.05, down 7.04%.
The sharp decline was met with a wave of large bullish options trades, headlined by two multi-million-dollar out-of-the-money put sales. A $2.63 million trade in the September 2026 $400.00 puts and a $2.28 million trade in the $340.00 puts dominated the flow, signaling that big money is using the dip to collect rich premium rather than buy protection, setting a confident tone for the stock.
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Options Indicators
AMD’s implied volatility is 71.30%, and with an IV percentile of 77.69%, current option volatility sits in an elevated regime, indicating that options are priced expensively relative to AMD’s own recent history. Although the IV/HV ratio of 0.86 suggests implied volatility is not dramatically stretched versus realized volatility, the overall percentile reading still points to a richer premium environment, meaning option buyers are paying up for volatility while premium-selling or spread-based structures may offer more efficient positioning. The Call/Put volume ratio is 1.22.
Large Trades
A PUT sale worth $2.63 million was the largest displayed large trade, with 3,493 contracts of the September 4, 2026 $400.00 put sold. With AMD referenced at $482.05, this strike was out of the money at execution, making the trade a moderately bullish cash-secured-put style expression. By selling downside premium below the current stock price, the trader is effectively signaling confidence that AMD will remain above $400.00 into expiration, while seeking to collect option income and potentially expressing willingness to accumulate shares at a lower effective entry point if assigned.
Another sizable bullish trade was a $2.28 million sale of 6,190 contracts in the September 18, 2026 $340.00 put. This was also an out-of-the-money put sale versus the $482.05 spot reference, but at a much lower strike, suggesting a more defensive bullish stance with substantial downside cushion. Strategically, this kind of trade points to premium collection and a view that AMD is unlikely to suffer a deep decline toward $340.00 by expiration, reinforcing the idea that large traders were comfortable underwriting downside risk rather than paying for protection.
Overall, the large-trade flow was clearly bullish. The dominant pattern across the full set of large trades was repeated out-of-the-money put selling, which typically reflects confidence in price stability or upside-to-sideways performance while monetizing elevated downside premium. Although there were some bearish elements, including put buying and call selling, those trades were outweighed by the larger and more numerous bullish premium-selling positions. Taken together, the order flow suggests institutional participants were more inclined to harvest income from downside fear than to position for a major breakdown, leaving the broader large-trade tone decisively constructive on AMD.
Strategy Reference
For those looking to mimic the bullish flow but with defined risk, selling a put vertical spread, such as the -400.00/+370.00 put spread in the same September 2026 expiry, can capture the elevated premium while materially reducing margin requirements and assignment probability.
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