Options market and AMD $165

https://www.nasdaq.com/articles/is-the-options-market-predic…

Investors in Advanced Micro Devices, Inc. AMD need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 16, 2022 $165 Call had some of the highest implied volatility of all equity options today.

Now this is an interesting read. What could be driving $165 calls in September based on what we know now. The thing we know is that AMD suggested a slight slowing this quarter but robust sales for the year. Is AMD buying another great company? Is AMD getting bought? Is AMD announcing another big partner?

Another thought, should we go buy the Sep $135 or $140 for 4 or 5 cents like ten or 100 contracts :slight_smile: and get a piece of this action? What a great article for AMD and on the Nasdaq news site…doc

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I would not read ANYTHING into this. I suspect it might even be a computer generated article. $165 is way out of the money for a very short term option. The bid is zero, and the ask is $0.01 for all options to about a strike of $150. There may have been some tax loss selling of these options?
Alan

Now this is an interesting read. What could be driving $165 calls in September based on what we know now. The thing we know is that AMD suggested a slight slowing this quarter but robust sales for the year. Is AMD buying another great company? Is AMD getting bought? Is AMD announcing another big partner?

Intel? Just kidding. AMD has solutions to all of Intel’s current major problems. But the don’t have to pay for Intel to continue eating their business.

And seriously that is what gives those options a non-zero value today. AMD will be announcing Zen 4 (Raphael, desktop and Genoa server) in September. The announcement was pushed back a week (from Sept. 15th) not because of any CPU issues but to give reviewers time to get (and use in benchmarks) the beta AEGSA 1207 bug fix for older chipsets out to reviewers. This is not a fix for X670 and X670E chipsets. https://www.tomshardware.com/news/agesa-1207-am4-motherboard… Well, it is, but anyone with a Raphael system to test should already have the new AGESA version. However, AGESA 1207 also fixes bugs in 5xx, 4xx, and 3xx series chipsets. AMD apparently concluded that an extra week of testing and writing reviews should result in comparisons to older Ryzen systems being consistent across reviews. This does not mean that Raphael will boot without DDR5 (or LPDDR5) only. Ways are coming to add DDR4 to Zen 4 and Zen 5 systems as added memory, so don’t throw out your DDR4 memory just yet.*

Another thought, should we go buy the Sep $135 or $140 for 4 or 5 cents like ten or 100 contracts :slight_smile: and get a piece of this action? What a great article for AMD and on the Nasdaq news site.

I like the way you think. :wink: In fact, if you win big–and $5/share, $500/contract can look pretty big–it might be a good idea to convert some of the contracts to stock. I’m not going to give tax advice on that. There could be dozens of different tax situations and investment goals among those posting here. (I may choose to buy some October options instead. A lot happening between now and Halloween.)

  • Today’s Saturday, so I’m not going to spend much time trying to describe how this will work. Basically, you will be able to add the DDR4 to your GPU and use it as VideoRAM even if you have a system with no dedicated VideoRAM. Sound complicated? Right now, the only use case I can see is if you have a laptop with integrated graphics and a (perhaps 4K) monitor on your desk, at home, at the office or both. The ‘extra’ memory will be used as VRAM. You will want at least 8 Gig but low-speed memory won’t slow your CPU down.
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What could be driving $165 calls in September based on what we know now.

I don’t see this.

When I look at the price history of “AMD Sep 16 '22 165.00 Call”, I see that it has dropped to 1 cent (the lowest possible price), stuck there for ten days, with basically zero trading volume. Do you have any indication, other than this RoboArticle?

https://www.barchart.com/stocks/quotes/AMD%7C20220916%7C165…