Option traders of chipmaker Advanced Micro Devices (AMD) are pricing in a big move ahead of earnings. With the stock at $360.54 as of Friday’s close, the closest at-the-money strike is $360, where the call is priced at $17.50 and the $360 put at $16.90, creating a straddle of $34.40. That implies a move of about 9.5%, or roughly $55 billion, which equates to an expected post-earnings range of roughly $326 to $395 per share.
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The nearby strikes support that same range. The $357.50 straddle is priced at about $33.91, while the $362.50 straddle is around $34.30, so the market is consistently pricing a move in the mid-$30s. Volume is also active on both sides, with the $360 call showing 11,869 contracts traded versus 1,236 puts. Open interest is higher on the call side too, which suggests bullish interest, though the pricing itself is still centered on volatility.
Overall, traders are clearly expecting AMD to move sharply after earnings. The call activity leans bullish, yet the straddle is mainly saying that investors should expect a large swing either way. For the stock, this means that an earnings beat is likely already priced in, and any disappointment could quickly send shares back toward the low-$330s.
Is AMD Stock a Good Buy?
In addition, analysts as a whole have a Moderate Buy consensus rating on AMD stock based on 19 Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $300.04 per share implies 16.8% downside risk.
