Salary Blowout Sends AMD Surging To file Highs


Following a blowout second-quarter earnings and revenue beat, Advanced Micro Devices (AMD) hiked its full-year forecast, citing an increase in chip demand as the work-from-home trend flourishes around the world. In response, the equity is swimming in bull notes, including an upgrade out of Susquehanna to “positive” from “neutral.” Now, AMD is buzzing with options activity, hitting a record high of $77.19 earlier, and was last seen up 12.6% at $76.14.

Today’s surge has AMD gapping higher for the second time this month alone, and has the stock sporting a brag-worthy 124% year-over-year gain. Supporting the shares on their impressive journey higher is the 100-day moving average.

About Earnings
Earnings are the net benefits of a corporation’s operation. Earnings is also the amount on which corporate tax is due. For an analysis of specific aspects of corporate operations several more specific terms are used as EBIT (earnings before interest and taxes) and EBITDA (earnings before interest, taxes, depreciation, and amortization).
Many alternative terms for earnings are in common use, such as income and profit. These terms in turn have a variety of definitions, depending on their context and the objectives of the authors. For instance, the IRS uses the term profit to describe earnings, whereas for the corporation the profit it reports is the amount left after taxes are taken out. Many economic discussions use principles derived from Karl Marx and Adam Smith. However, the rise of the importance of intellectual capital affects such analyses.

Earnings Blowout Sends AMD Surging To Record Highs

About Blowout
Blowout or Blow out may refer to:

Looking toward the options pits, volume is soaring. So far today, the chip stock has seen 705,000 call and 313,000 put contracts traded. This volume runs at double the expected rate, and in the 99th percentile of its annual range. Most active looks to be the weekly 7/31 80- and 75-strike calls.

Earnings Blowout Sends AMD Surging To Record Highs

Longer term, the sentiment has been the same. This is per data at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which shows Advanced Micro Devices stock with a 50-day call/put volume ratio of 3.63, ranking in the 99th annual percentile. In other terms, calls have been purchased over puts at a quicker-than-usual clip over the past 10 weeks.

Now looks like an attractive time to trade the semiconductor giant too. In fact, the stock’s Schaeffer’s Volatility Index (SVI) of 60% stands in just the 27th percentile of its annual range, implying that options players are pricing in relatively low volatility expectations at the moment.

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