To The Moon

Gear up, tech enthusiasts! $Advanced Micro Devices(AMD)$ just experienced a bullish breakout on Friday, and things are looking exciting. Here's why I'm keeping a close eye on AMD.

Friday's price surge wasn't a fluke. Looking at the technical indicators, we see a clear breakout pattern, suggesting a potential upward trend. Call options activity is also bullish, with increased delta and gamma focused around the $180 price point. This indicates that traders are anticipating a continued rise towards $180.

AMD Daily Chart

While breakouts are encouraging, it's important to consider support levels. If there's a pullback, $165 seems like a strong support zone based on past price action. This presents a potential opportunity to enter the trade.

Here's how I'm approaching this:

• Option 1: Selling Puts: If the price dips but holds above $165, I might consider selling a Put option with a strike price of $165. This strategy would profit if the price stays above $165 by the expiry date.

• Option 2: Buying Calls: If the price keeps climbing and momentum builds, I might consider buying a Call option with a strike price of $180. This would capitalize on the potential for further gains.

Trading for the Stock Enthusiast

If options seem too complex, you can always trade the stock itself. With the current price hovering around $171-172, a target price of $185 and a stop-loss at $166.66 would create a favorable risk/reward ratio of approximately 2.5. Remember, you can always adjust these levels based on your risk tolerance.

I'm bullish on AMD based on the recent breakout and technical indicators. However, this is not financial advice. Always do your own research before making any investment decisions.

This trade looks promising, but remember, the market is unpredictable. Keep a watchful eye and be prepared to adjust your strategy as needed.

Disclaimer: This is just my analysis of AMD, and you should always do your own research before making any investment decisions.