AMD puts are now only up 11.71% right now.
While I do expect more downside, I suspect it will be short-lived. Yesterday's sell-off was nothing more than profit-taking. Those are the dips I like to take advantage of and then move on (typically I would have sold already, but want to see how this plays out a bit longer).
As you can see, with shares up ~7%, investors want in this name -- driven by the improving fundamentals which lead to multiple analyst upgrades (this is one of the most love stocks out there right now). Average analyst price target is ~$40. This is why investors are stepping in today.
When I shorted AMD, RSI was at the overbought level of 85, now it's at 77. Historically, RSI for AMD can go to a high of +87. So we are in a trading range.
So, here's what I'm doing. I am maintaining my Oct-Puts and will hedge it with Oct-Calls. I'm looking at the 10/12/18 $33 Calls.
I'll likely buy these early next week. I don't typically like to open new positions on a Friday. Tho doesn't hurt to do so given that this is just a hedge position.
Enjoy the weekend everyone.
More updates to come.
Cheers!