With Advanced Micro Devices reporting earnings after the close, we saw surprisingly few AMD orders hit the News Flow Scanner after an avalanche the past several weeks.
And what a past several weeks it’s been for chip stocks, particularly Super Micro Computer (SMCI), AMD and Nvidia (NVDA).
Side note: I’ll be releasing my very own list of the top chip stocks for February ahead of a bunch more semiconductor earnings — including NVDA — soon, so keep your eyes peeled!
SMCI reported Tuesday, exploding from about $495 a share at the close to as high as $565 in premarket trading Wednesday… before profit taking pushed it all the way back down to $510 by lunchtime on the East Coast.
We covered four SMCI orders in this newsletter on Monday, and I warned that a couple of them were likely too far out of the money…
But the one closest to the money, the Feb. 2 expiration, $515 calls, would have paid a pretty penny — while also costing a pretty penny up front.
These calls were going for around $18.00 a contract — so $1,800 — during the final half-hour of trading Monday, bouncing over $26.00 a contract right after the open today. That’s a gain any trader would love, but a lot of risk up front.
As for what’s cooking with AMD ahead of Tuesday’s report, we saw three orders as of this writing: the weekly expiration $177.50 and $192.50 calls, and the March monthly $190 calls.
Market makers expect a move of around $15 with shares down 2.7% on the day to just under $173 as of 12:30 p.m. ET.
So once again, we have a couple of orders that are pretty far out of the money and what market makers expect the move to be. Though, one of them (the March $190) has more time.
The weekly $177.50 calls were going for about $6.40 a contract, so once again the up-front price is pretty steep! These calls will go to $0 or close to it if wrong, so respect that risk!
Also included below are a couple of non-AMD orders!
Tuesday’s Top Order Flow:
- AMD Feb24 2nd Strike: 177.5 Calls premium: $142,825 ASK BULLISH
Trade Date: January 30, 2024 Trade Time: 12:20 pm - AMD Feb24 2nd Strike: 192.5 Calls premium: $282,100 ASK BULLISH
Trade Date: January 30, 2024 Trade Time: 12:09 pm - AMD Mar24 Strike: 190 Calls premium: $433,125 ASK BULLISH
Trade Date: January 30, 2024 Trade Time: 11:03 am - CCL Mar24 Strike: 15 Calls premium: $341,960 ASK BULLISH
Trade Date: January 30, 2024 Trade Time: 12:13 pm - BKR Feb24 Strike: 28 Puts premium: $631,069 ABOVE ASK BEARISH
Trade Date: January 30, 2024 Trade Time: 10:36 am
Note: If no date is listed after the month, it’s the monthly expiration (third Friday).
Lance Ippolito Trading Team
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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