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Is AMD Ready to Run?

We look at AMD and see a stock ready to breakout again

Advanced Micro Devices (AMD) has been enjoying a fantastic year, thanks to strong earnings, exciting new products and setbacks to rival Intel. After peaking at $94.26 on September 2nd, the stock pulled back with the rest of the Tech sector. AMD has been quietly running up into the low $80s again and seems like it’s getting ready to make another push.

The company is expected to release new details of their new Zen 3 architecture on October 8th and the options traders seem to be optimistic. AMD is also expected to release Q3 earnings on November 3rd in which analysts expect an EPS of $0.352, nearly double 2019 Q3 earnings. As AMD has been eating into Intel’s market share, and with Intel having to delay their 7nm chip process, I’m expecting the stock to start pushing its all time high again this month.

In Mid September, I was able to purchase shares at $75.21. I’m expecting the market to dip this week as the fallout of the President’s Covid-19 diagnosis runs its course and will be looking at purchasing some $90 call options with a November 20 expiration at a discount.

Update:

I ended up selling my shares on 10/23 at $80.23. I ultimately made the decision to sell in order to free up capital to exercise some options contracts that ended up doing very well. I did purchase a couple weekly options contracts with the profits so I wouldn’t miss out if the rebounded, but that did not work out as I had hoped… Still, the trade ended up being a net positive for my account!


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