NASDAQ:AMD is slightly up today, POSSIBLY on the hopes that the XLNX acquisition will be passed at their meeting. I am still bullish on AMD with the first price target being at the 50% fib retracement level of $84, and the second being $89.
Options activity has been 3 to 1 calls to puts for this Friday with the average strike price being $82, which suggests we will not drop far in price unless market sentiment shifts. XLNX news will make or break this asset in the very near term, however I strongly expect a earnings run up if the price is effected negatively by today's news.
TRADE AT YOUR OWN RISK. LIKE/FOLLOW IF YOU AGREE :-)
I agree, I am also long on AMD. A double bottom has formed with the neckline at the 84 level which shows an overall bullish trend. We also seem to be trending up along some type of trendline
slybandit247
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Well, based on your theory, which I agree with, the News was good. Not only did they announce the merger at mid-day, but apparently traders responded well to it, whatever that means lol. If you look at a company like Intel, which is basically AMD's main rival, and they are priced at $62 ish which is confusing because as far as consumers are concerned Intel chips are much better than AMD. Granted that was before this merger, which seems like it was meant to expand AMD's capabilities, not to just improve its chip quality. If that is the case then you may be able to compare AMD to Nvidia as far as what they do and how well they do it. Nvidia is valued at $555 ish