New AMD Options May Offer Investors Unique Strategies by 2027

Today, investors in Advanced Micro Devices Inc (Symbol: AMD) saw the introduction of new options for December 2027 expiration. With 1009 days until expiration, these newly trading contracts may present selling opportunities for puts or calls, allowing sellers to secure higher premiums compared to those with closer expirations.

At Stock Options Channel, our YieldBoost formula has analyzed AMD’s options chain to identify a notable put and call contract. The put contract at the $95.00 strike price currently bids at $19.90. If an investor sold this put contract, they would commit to purchasing AMD stock at $95.00 while also collecting the premium. This effectively lowers their cost basis to $75.10 per share, assuming no broker commissions. For investors interested in acquiring AMD shares, this option offers a more appealing cost alternative compared to the current price of $99.24 per share.

The $95.00 strike represents about a 4% discount to AMD’s current trading price, which means it is out-of-the-money by that same percentage. Current analysis indicates a 73% probability that the put contract could expire worthless. Stock Options Channel will monitor and update these odds regularly, providing a detailed chart on our website. If the contract does expire worthless, the premium would yield a 20.95% return based on the cash commitment, equating to a 7.58% annualized return—a value we refer to as YieldBoost.

Below is a chart showing the trailing twelve-month trading history for Advanced Micro Devices Inc, highlighting in green where the $95.00 strike is positioned:

Shifting focus to the options calls, the contract with a $125.00 strike price currently bids at $25.15. If an investor were to buy AMD shares at the current price of $99.24 and sell this call as a covered call, they would commit to selling their stock at $125.00 while also collecting the premium. This strategy could provide a total return of 51.30% if the stock is called away at expiration, not including dividends and before broker commissions. However, substantial upside could potentially be missed if AMD shares appreciate significantly, emphasizing the importance of reviewing AMD’s trading history and business fundamentals.

The chart below depicts AMD’s trailing twelve-month trading history, with the $125.00 strike highlighted in red:

The $125.00 strike represents approximately a 26% premium over the current trading price, meaning it is also out-of-the-money by that percentage. There exists the potential for the covered call contract to expire worthless, enabling the investor to retain both their shares and the premium. Current analysis suggests a 41% chance of this occurrence. Stock Options Channel will continually track and publish these odds alongside the trading history of the option contract. If the contract does expire worthless, the premium would result in a 25.34% boost to returns, or a 9.17% annualized amount, which we also classify as YieldBoost.

The implied volatility for the put contract is 49%, while the call contract’s implied volatility stands at 47%. Evaluating the actual trailing twelve-month volatility, calculated from the last 250 trading days along with today’s price of $99.24, is at 45%. For more put and call options insights, explore StockOptionsChannel.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.