DailyPlay – Opening Trade (AMD) – December 24, 2024

AMD Bullish Opening Trade Signal

Investment Rationale

Advanced Micro Devices, Inc. (AMD) has recently reached oversold conditions on both daily and weekly timeframes and is exhibiting signs of exhaustion, indicating a higher likelihood of a strong rally ahead.

The stock trades in line with the industry average, with a forward price-to-earnings (PE) ratio of 23.85x compared to the industry average of 23.54x. However, AMD is projected to grow significantly faster than its peers, with anticipated earnings-per-share (EPS) growth of 40.07%, well above the industry average of 19.62%. Similarly, its expected revenue growth is 21.61%, outpacing the industry average of 12.81%. Despite this strong growth potential, AMD’s net margins are 7.52%, falling short of the industry average of 18.77%.

AMD – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Long Call

Details: Buy to Open 1 AMD June 20, 2025 $100 Call @ $31.92 Debit per Contract.

Total Risk: This trade has a max risk of $3,192 (1 Contract x $31,92) based on a based on a hypothetical $100k portfolio risking 3%. We normally suggest risking only 2% but in this instance we recommend risking 3% of the value of your portfolio and divide it by $31.92 to select the # contracts for your portfolio.

Counter Trend Signal: This is a bullish trade on a stock that is expected to continue higher off recent support.

1M/6M Trends: Bearish/Bearish

Relative Strength: 2/10

OptionsPlay Score: 79

Stop Loss: @ $15.96 (50% loss of premium)

View AMD Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View AMD Trade