From Nasdaq:

Investors in Advanced Micro Devices Inc (Symbol: AMD) saw new option contracts become available for the January 2025 expiration this week. With 347 days until expiration, the contracts present a potential opportunity for sellers, offering a higher premium than contracts with a closer expiration.

The $170.00 put contract has a current bid of $24.15. If the investor were to sell-to-open the put contract, they would collect the premium, putting the cost basis of the shares at $145.85 (before broker commissions).

There is also the possibility that the put contract would expire worthless. The current odds of that happening are 63%. Should the contract expire worthless, the premium would represent a 14.21% return on the cash commitment.

The put contract has an implied volatility of 46%, while the implied volatility of the call contract is 45%. The actual trailing twelve month volatility is calculated to be 45%.

On the calls side, the call contract at the $195.00 strike price has a current bid of $25.35. For this covered call option, the investor could potentially earn a total return of 26.64% if the stock gets called away at the January 2025 expiration.

The $195.00 strike represents an approximate 12% premium to the current trading price of the stock, with a 47% chance that the covered call contract would expire worthless. In that case, the premium would represent a 14.57% boost of extra return to the investor, or 15.32% annualized.

Advanced Micro Devices Inc’s trading history has been considered for the options contracts, and at Stock Options Channel, all the necessary statistics and data are analyzed regularly. For the full analysis and ideas on put and call options contracts, visit StockOptionsChannel.com

In addition, investors can find more resources and information on funds, institutional investors, and industry rankings at Stock Options Channel website. As always, the views and opinions expressed belong to the author.



Read more: First Week of January 2025 Options Trading For Advanced Micro Devices (AMD)