Investors in Advanced Micro Devices Inc (AMD) witnessed the start of trading for new options with an expiration date of August 5th. Notably, a put contract at the $520 strike price has a current bid of $36.30, allowing investors to secure a cost basis of $483.70 per share if the contract is sold to open. This represents a discount of approximately 1% compared to AMD’s current trading price of $526.29, with a 57% probability that the put contract will expire worthless.
On the call side, a $530 strike price contract is trading with a bid of $36.50. Investors purchasing shares at the current price can potentially achieve a total return of 7.64% if the stock is called away at expiration. This strike price is also about 1% above the current trading price, with a 47% chance of the call contract expiring worthless.
The implied volatility for the put contract stands at 99%, while the call contract’s implied volatility is 95%. In contrast, AMD’s actual trailing twelve-month volatility is calculated at 68%. For further exploration of options, investors are encouraged to visit StockOptionsChannel.com.
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