Demo Options Plan after $AMD's 8.77% Surge: Bull Call Spread

TheBeautyofOptions
02-25 20:56
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The explosive rally of $Advanced Micro Devices(AMD)$ was primarily fueled by the blockbuster announcement of a strategic partnership with Meta Platforms.

$Meta Platforms, Inc.(META)$ will deploy up to 6 GW of AMD's AI compute chips, representing a potential multi-year order valued in the hundreds of billions of dollars.

This massive deal solidifies AMD's position as a credible challenger to $NVIDIA(NVDA)$ in the AI accelerator market, overshadowing recent concerns about near-term guidance and operational expenses.

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🎯 Key Price Levels of $Advanced Micro Devices(AMD)$

  • Immediate Pivot/Resistance: $215.22 (Previous session's resistance). A decisive break above this level could open the path to $230.

  • Primary Support: $213.22 (Previous session's support, now turned into a key floor). Holding above is critical for the uptrend.

  • Strong Resistance: $230 - $235 zone (Next major technical and psychological barrier).

🔮 Weekly Outlook
Expect consolidation and volatility near the $215 pivot. A successful breakout could target the $225 - $230 range in the coming week.

Failure to hold $213 support may lead to a pullback towards $205. The stock is likely to trade in a $210 - $225 channel as it digests the massive news.

🎯 Options Strategies

Strategy 1: Bull Call Spread

  • View: Cautiously Bullish. Expecting consolidation with a potential breakout above $215, targeting the $225-$230 resistance zone.

  • Option Contract Portfolio:

    • Buy to Open: 1 AMD Call, Strike $215, Expiry 2026-03-06, cost 5.13 *100 per contract

    • Sell to Open: 1 AMD Call, Strike $230, Expiry 2026-03-06, gain 0.88 *100 per contract

  • Max Gain & Loss:

    • Max Gain: $1,500 per spread (($230 - $215) * 100) - Net Debit

    • Max Loss: Limited to Net Debit Paid:

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AMD Jumps on Mega AI Deal With Meta! More Gains Coming for AMD?
AMD rose 8.77% with $17.246 billion in turnover after reports that Meta reached an AI chip agreement potentially worth over $100 billion. Meta plans to deploy up to 6 gigawatts of AMD AI chips over five years for data center expansion. As part of the deal, AMD may grant Meta shares equivalent to about 10% of its total equity, subject to milestone conditions. Does this agreement materially reshape AMD’s long-term outlook? How significant is Meta’s potential equity stake?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • TimothyX
    02-25 23:01
    TimothyX
    Immediate Pivot/Resistance: $215.22 (Previous session's resistance). A decisive break above this level could open the path to $230.

    Primary Support: $213.22 (Previous session's support, now turned into a key floor). Holding above is critical for the uptrend.

    Strong Resistance: $230 - $235 zone (Next major technical and psychological barrier).

  • TheBeautyofOptions
    02-25 20:57
    TheBeautyofOptions

    【Strategy 3: Broken Wing Butterfly (Call Skew)】 View: Neutral with a Bullish Bias / Range-Bound ($215-$230). Expecting consolidation with limited downside but a higher probability of a modest upside move than a large drop.

    • Strategy Type: Defined Risk / Credit Spread with Asymmetric Payoff
    • Option Contract Portfolio:
      • Buy to Open: 1 AMD Call, Strike $215, Expiry 2026-03-06
      • Sell to Open: 2 AMD Calls, Strike $225, Expiry 2026-03-06
      • Buy to Open: 1 AMD Call, Strike $235, Expiry 2026-03-06
    • Max Gain & Loss:
      • Max Gain: Achieved if stock closes at $225 on expiry. Profit = Credit Received + ($225-$215) * 100.
      • Max Loss: Limited to Net Debit Paid (can be structured for a small credit or minimal debit).
  • TheBeautyofOptions
    02-25 20:57
    TheBeautyofOptions

    【Strategy 2: Short Put (Cash-Secured or Naked)】 Option Contract Portfolio:

    • Sell to Open: 1 AMD Put, Strike $205, Expiry 2026-03-06
    • Max Gain & Loss:
      • Max Gain: Limited to Premium Received ($5.25 per share, estimated from chain).
      • Max Loss: Substantial (if assigned, equivalent to buying 100 shares at $205).
    • Initial Cost/Credit: Net Credit ~$5.25 per share.
  • Cadi Poon
    02-25 23:05
    Cadi Poon
    $Meta Platforms, Inc.(META)$ will deploy up to 6 GW of AMD's AI compute chips, representing a potential multi-year order valued in the hundreds of billions of dollars.
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