Breaking News
Get 40% Off 0
😲 Missed the +20.8% surge in our stock strategy last month? Not again! Get premium insights Get 40% Off Now

Trading Strategies: How I Traded AMD Options After Earnings

By Shahryar RahmaniMarket OverviewNov 02, 2023 13:04
ca.investing.com/analysis/trading-strategies-how-i-traded-amd-options-after-earnings-200583512
Trading Strategies: How I Traded AMD Options After Earnings
By Shahryar Rahmani   |  Nov 02, 2023 13:04
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
AMD
+1.34%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

My $4926 profit Trading AMD (NASDAQ:AMD) Options after its Earning

In yesterday's AMD earnings report on November 2, 2023, I closely monitored the company due to the recent buzz surrounding the AI industry. As an options trader, I specialize in capitalizing on market momentum following earnings announcements. AMD exceeded expectations in its third-quarter earnings, reporting a robust revenue of $5.8 billion and an EPS of $0.70. While its Q4 revenue projection of $6.1 billion fell short of analysts' estimates, the company quickly rebounded, bolstered by optimism surrounding its upcoming data center chips, ultimately driving a notable 8% increase in its stock price the following day.

Despite challenges, AMD remains focused on innovation, particularly in the competitive AI market, where it aims to challenge industry leader Nvidia. CEO Lisa Su emphasized the company's dedication to groundbreaking technology, even as it faces obstacles in the gaming sector. Notably, Cathie Wood's Ark Invest expressed confidence in AMD's potential, investing over $5 million in the company's shares.

Analyzing the premarket data, I identified the $100 zone as a crucial resistance level for AMD. 


I posted premarket gameplan before the market open for our Meta Trading Club community and this was my gameplan for the day:


Observing the substantial buying strength and significant volume after the market opened, I strategically entered the market at $102 strike, same-week expiry AMD Call options. Leveraging insights from Level 2 and Times and Sales, I made a calculated decision, witnessing AMD's impressive rally and cashing in on the opportunity.

 

By scaling out of my position, I managed to secure substantial gains, with some contracts yielding over 150% profit. In less than two hours, I realized a total profit of $4926. 

 

It's worth noting that I closed my position before the FOMC announcement at 2 PM, where the Federal Reserve maintained its key interest rates, sparking a market rally.

Looking ahead, I anticipate increased market volatility in the coming days and weeks, especially with events like AAPL's earnings announcement on Thursday, November 2, after the market closes. These developments present lucrative trading opportunities, and I remain vigilant to capitalize on the evolving market dynamics.



Trading Strategies: How I Traded AMD Options After Earnings
 

Related Articles

Ron Butler
The BIG Real Estate Question   By Ron Butler - Mar 05, 2024

This is the AGE OLD Question in the Mortgage Business: which one is better? For 15 year Variable Mortgages were consistently a lower cost option for Borrowers, it was almost a...

Trading Strategies: How I Traded AMD Options After Earnings

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email