[yield Hunting Recommendation] AMD ,making it a great target for low-volatility trades!

Tiger_Academy
11-13

Hello 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!

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.

Report

Comment（11）

  • Top
  • Latest
  • MicroStrategist
    ·11-13
    AMD is definitely better than Intel. how the tides have turned
    Reply
    Report
  • Jovi9488
    ·11-13
    TOP
    FCN is new to me. Where can I learn more about it?
    Reply
    Report
    Fold Replies
    • Tiger_Academy: 
      you can refer to our lessons about FCN before:https://ttm.financial/college/column/C20240115031015347
      11-13
      Reply
      Report
  • fir3tiger
    ·11-13
    very good target and strong
    Reply
    Report
  • icycrystal
    ·11-13
    more options for investment...
    Reply
    Report
  • ECLC
    ·11-13
    TOP
    Fixed Coupon Notes need minimum amount US$200k.. only for rich to get richer.
    Reply
    Report
    Fold Replies
    • Tiger_AcademyReplying tonomadic_m: 
      you will be rich,god bless you [比心]
      11-13
      Reply
      Report
    • Tiger_Academy: 
      come on!you will be rich!
      11-13
      Reply
      Report
    • nomadic_m: 
      it's not even offered to kiwi users. we're poor becoming poorer 🤣😂🤣

      @Barcode

      11-13
      Reply
      Report
  • highhand
    ·11-13
    woooo... min. 200k. think I shall sell some puts because I don't have 200k to put into AMD. 125 to 130 gives a small premium for waiting to get AMD at this price. not bad I say.
    Reply
    Report
  • nomadic_m
    ·11-13
    FCN is interesting. will this feature ever be offered to kiwi users?
    Reply
    Report