The theory here is that if the semiconductor shortage and downward pressure on tech stocks continues, all AMD needs to do is break the local ascending support and the 9-month horizontal and then it hits a free-fall zone all the way to 58. Coupled with a macro head-and-shoulders, this is a really cheap bet with a potentially massive payout.
@razler How do you come up with the 18 June as expiration date?
razler
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@vtbndkt86, Not a whole lot more than speculation. I figure this is a low chance of success given that a bunch of stuff needs to happen all at once, so I gave it just enough time to work and keep the Put premium nice and low.
jakeforbes
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Completely disagree. If you think the chip shortage is something new then you obviously don’t follow this industry. Any new trader could Google it and see this has been an on and off issue since the 80’s. Additionally, the leading semiconductor company in the world that manufactures chips for Amd, Tsm, already stated in their latest earnings call about chip shortages easing next quarter. Automakers want another bailout and the media gets ratings fabricating a crisis. Amd won’t be hitting the 90’s this month but 50’s soon???? Gimme a fkn break
Varrilete
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@jakeforbes, Well if i learn something with this trash is that u never know with AMD. I was sure this would at least hold 83 and trade 83-90s for some time but after ER TITANIC sink i lost all hope