This past week, we saw an unusually large amount of options action in Advanced Micro Devices (AMD), says Jay Soloff of Investors Alley.
The chipmaker saw over one million options contracts trade, which is 2.6x the normal amount. Almost 80% of the volume was in calls, which tends to be a bullish signal.
AMD is up sharply after news that competitor Intel (INTC) was going to have a production delay. One of the biggest trades was a 3,000-lot covered call trade that expires in January. The trade has a yield of nearly 8% based on premium collected.
Learn more about Jay Soloff at Investors Alley.
