Advanced Micro Devices (AMD) stock saw heavy trading in short-term call options after strong earnings results, dropping over 16% to $201.72. Over 6,600 call options traded at the $217.50 strike price for Feb. 6 expiry, with a premium of $1.69. This activity suggests bullish sentiment or covered call selling for high yield. AMD’s Q4 revenue rose 34.1% YoY, with strong margins and FCF growth, indicating potential market value upside. Analysts project revenue to reach $46.62 billion in 2026 and $64.25 billion by 2027, supporting a higher FCF margin and potential stock price target increase. The market values AMD at $326.683 billion, but estimates suggest a target price of $342.92 per share, indicating the stock is undervalued.

Read more at Barchart: Heavy Unusual Trading in Call Options of AMD Stock Implies a Bullish Outlook