Option Focus | AMD’s $1.61 Million Short Put on 410 Strike Expiring 2026 Suggests Bullish Premium Collection, Yet Broader Large-Trade Flow Leans Bearish on Low IV

Option Witch07:01

Advanced Micro Devices (AMD) closed at $465.58, down 2.33%. The session featured notable large options activity, including a $1.61 million short put on the 410.00 strike expiring in 2026 and a $795,500 put purchase on the same strike, reflecting conflicting institutional views. Overall, bulk-order flow leaned bearish despite the largest single trade being a bullish premium collection.

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Options Indicators

AMD’s implied volatility is 51.18%, while its IV percentile stands at 11.95%, which places current volatility in the low end of its recent range and suggests options are relatively cheaply priced rather than expensive. With the IV/HV ratio at 0.92, implied volatility is also sitting slightly below historical volatility, reinforcing the view that current option premiums are on the softer side and that the market is not demanding a large volatility premium at the moment.

The Call/Put volume ratio is 1.03.

Large Trades

A PUT sale worth $1.61 million was the largest displayed trade, with 2,631 contracts sold on the AMD 410.0 strike expiring 2026-10-02. With AMD referenced at 465.58, this put was out of the money at execution, making the trade a moderately bullish stance that suggests the seller was willing to collect premium while expressing confidence that the stock would remain above 410.0 into expiration. Strategically, this type of single-leg short put often reflects income generation or a willingness to accumulate shares at a lower effective entry level if assigned.

A PUT purchase worth $795,500 was the other displayed large trade, consisting of 1,337 contracts bought on the AMD 410.0 strike expiring 2026-10-02. This option was also out of the money versus the 465.58 reference price, so the buyer was positioning for downside protection or a bearish directional move toward or below 410.0 before expiration. Overall, the bulk-order flow leans bearish on balance: although the largest individual transaction was a bullish short put, the broader large-trade mix shows stronger downside-oriented positioning, indicating that institutional sentiment is cautious and skewed toward expecting weaker price action or an increased need for protection rather than a sustained upside breakout.

Strategy Reference

For traders seeking low assignment probability on a single-leg short put, considering an OTM strike closer to 400.00 with a smaller delta may reduce downside risk, while a put credit spread such as selling the 410.00 put and buying a lower strike can help cap margin requirements.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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