To The Moon

$Advanced Micro Devices(AMD)$ shares closed at $503.89, up 7.78% on the session. Recent swings in AMD’s share price have fueled elevated activity in the options market. Over the past three trading sessions, large block trades have largely reflected a cautious tone, dominated by selling far-dated out-of-the-money call options and buying out-of-the-money puts, alongside a smaller number of bullish wagers targeting a near-term rebound.

Options Metrics

Implied Volatility (IV):
Current implied volatility stands at 67.97%, while its historical percentile has climbed to 86.45%, indicating options pricing is elevated relative to historical norms and that contracts remain relatively expensive.

Call/Put Volume Ratio:
The call-to-put volume ratio stands at 1.48, suggesting call trading activity modestly exceeded put volume. However, the structure of large block trades indicates investor sentiment is far from uniformly bullish.

Block Trade Activity

Large AMD options trades over the past three sessions were primarily concentrated in selling out-of-the-money calls and buying out-of-the-money puts, pointing to a cautious-to-slightly bearish bias. At the same time, some traders continued to position for a short-term upside move through near-dated at-the-money call purchases.

With implied volatility in the 86th percentile and the IV/HV ratio at 0.77, options sellers appear increasingly focused on premium collection and volatility-selling strategies.

Multi-Leg Strategy Trades

One notable transaction involved a diagonalized variation of a bullish put spread structure, with a net premium outlay of approximately $2.246 million.

The strategy involved buying September 2026 $320 puts while simultaneously selling May 2026 $435 puts. The positioning is effectively closer to a structure designed to secure deep downside protection for longer-term holdings while financing part of the cost through short-dated put premium collection. The trade reflects expectations for range-bound trading or a modestly constructive outlook on the stock.

Notable Single-Leg Trades

Far-Dated Out-of-the-Money Call Selling

The largest individual trade involved the sale of September 2026 $620 call options, generating roughly $6.52 million in premium income.

The trade reflects a view that AMD shares are unlikely to break above the $620 level before expiration, while allowing the seller to capitalize on elevated implied volatility through premium collection.

$AMD 20260918 620.0 CALL$

Source: Tiger Trade App

Near At-the-Money Call Buying

Separately, traders purchased May 2026 $500 call options worth approximately $1.63 million, indicating speculative positioning for continued near-term upside momentum in the stock.

$AMD 20260529 500.0 CALL$

Source: Tiger Trade App

Out-of-the-Money Put Buying

Another notable trade saw investors buy June 2026 $410 put options valued at roughly $690,000, either as a hedge against downside risks into early June or as an outright bearish wager.

$AMD 20260605 410.0 PUT$

Source: Tiger Trade App

Deep Out-of-the-Money Put Selling

Traders also sold May 2026 $325 put options in a small-scale transaction worth around $6,000. The strategy reflects a classic premium-harvesting approach through the sale of deeply out-of-the-money puts with a relatively low probability of assignment.

Key Takeaways

Overall, the dominant flow in AMD options points to a cautious market stance. Selling far-dated out-of-the-money calls — particularly the September 2026 $620 calls — alongside purchases of out-of-the-money puts such as the $410 and $320 strikes, suggests traders are seeking to cap upside exposure while maintaining downside protection.

The positioning collectively reflects expectations that AMD shares may remain range-bound over the medium term, rather than entering a sustained breakout phase. By transaction value, the sale of the $620 calls was the clear centerpiece of recent options activity.

Strategy Considerations

Against a backdrop of elevated implied volatility, premium-selling strategies remain attractive, though investors must remain mindful of risk exposure.

For investors seeking to generate income, selling far-dated out-of-the-money options with lower probabilities of being exercised — such as contracts with an absolute delta below 0.2 — may offer an effective premium-collection approach.

For those unwilling to assume significant margin requirements or theoretically unlimited risk, defined-risk vertical spread structures — including bear call spreads or bull put spreads — may represent more prudent alternatives.