Reward 200 Tiger-coinsHello everyone,
It's been 9 months since AMD entered a wide trading range, and a long consolidation box is gradually taking shape. If we were to pick one of the most stable stocks among tech companies right now, AMD would definitely be one of them. While Tesla has surged past the $300 mark, AMD, despite the boost from its Q3 earnings report, only saw a modest 4% increase before being mysteriously pulled back down to its 20-day moving average...
To be fair, if you were betting on a rally like Tesla's, AMD has been disappointing lately. However, if you are playing a range-bound strategy, AMD is undoubtedly a solid pick. Especially for trading FCNs (Fixed Coupon Notes), it offers strong support at the bottom and a well-defined consolidation range, making it a highly stable choice.
Of course, apart from being suitable for FCN strategies, the pricing is crucial. Let's take a look at the relevant FCN quotes as usual:
Strike Price: 90%
Annualized Yield: 19.22%
Term: 3 months
Based on AMD's current price of $145.26, with a strike price ratio of 90%, the entry price would be $130.73. From a technical analysis perspective, this level provides a relatively safe entry. Additionally, historical backtesting data shows a high profitability rate of 88.87%.
Given that AMD is a strong support stock with a prolonged consolidation pattern, the likelihood of breaking into an upward channel is much higher than entering a downward one. This inherent safety is already priced into the FCN's yield. Consequently, the current yield rate of 19.22% for AMD is not as high as it was a while ago. However, considering the current range-bound movement, using an FCN strategy for AMD now offers a better risk-to-reward ratio compared to other similar strategies.
If you're interested in FCNs, feel free to click on Yield Hunting to inquire and place an order!
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