r3anand

AMD has gone parabolic, good shorting opportunity

Short
NASDAQ:AMD   Advanced Micro Devices Inc
Short idea is summarized as follows

1. stock has gone parabolic and these typically have aggressive corrections
2. robintrack shows sentiment is extremely optimistic so would like to make a contrarian bet
3. assuming a SZ 84-88 so taking a $4 risk and executing the trade via November PUTS. 80 strike
Comment: let me know if there's something I wasn't clear about and I shall clarify!

Comments

AMD will succeed through 2021, 2022, and 2023. They are more favorable than Intel at the moment. Right now, the S&P 500 is up. AMD only emphasizes that. Through the election and beyond, including work from home and digitizing everything, AMD demand will continue. The trend is your friend!
+2 Reply
r3anand brianiski
@brianiski, I dont doubt the fundamentals of the company, theyre great, but what im trying to say is, all that is baked into the price already ! Trend is your friend, UNTIL its not :)
+2 Reply
you got some good point here mate. But this time is different as compared to the historic charts. going back during such parabolic moves the times were different and we had not faced anything close to covid19 pandemic. Furthermore this time around QE (Quantitative Easing) has resulted into strong support to the market. Next Stimulus should push the stocks more high especially Tech stocks and AMD could potentially move as high as 100. As long as the fed keeps printing money...tech stocks have more room to grow and Trump running the country like a corporate which is definately a positive for the stock market.
Good analysis tho but you have to take quantitive easing and other factors into consideration.
Nice analysis tho, keep up the good work!
Cheers
+2 Reply
r3anand btgraph
@btgraph, i love when people say "this time is different" because it rarely ever is ! :). Yes, QE will continue but instead of Wall St its going to go to Main St which is opposite of whats been happening for the last decade. That being said, anything is possible in this crazy market and if risk gets high, I'll take a loss and move on.
+2 Reply
yahara r3anand
@r3anand, From the looks of it, yep.... You WILL take a loss and move on. You picked the wrong time to short young man. Ooopsie. Just like all of the other shorts who wander through here and get crushed. You chose to ignore the other posters advice, This time is different. You might wish to understand the technology and company you are betting against. A blind short without understanding underlying corporate product lines and emerging technology is a rookie mistake. But like many others here, I am more than happy to take your money. Thanks.
+2 Reply
@yahara, no need to be weird about it
+1 Reply
@yahara, looks like you are wrong and he was right you weirdo. keep buying blindly.
+1 Reply
r3anand bi40ptions
@bi40ptions, its okay ! market is the best teacher; we learn everyday :)
Reply
bi40ptions r3anand
@r3anand, i just hate the emotional and hostile traders. the ones that cheer on stocks and attack someone for thinking differently. Especially when they end up wrong.
+1 Reply
Do you still think this is a case (as of September 9th)? Thx
+1 Reply
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