When we first highlighted AMD (NASDAQ: AMD) in our Original AMD Analysis Article, we made the case that AMD’s oversold RSI, bullish MACD crossover, and institutional accumulation created a rare opportunity for long-dated call options (LEAPS).
The trade setup was simple but powerful:
- Contract: Jan 2027 $100 ITM Call
- Delta: ~0.75–0.85 (ideal for leveraged exposure with limited theta decay)
- Entry Price: Around $41 per contract
- Targets: $60 (+50%) and $80 (+100%)
This was a structured, hedge-fund style play — allowing traders to benefit from AMD’s AI/data center growth cycle while controlling downside risk. Now, with AMD rallying to ~$152, the trade has already delivered outstanding results.
📈 Options Trade Results
- Entry: Jan 2027 $100 Call at $41 (June 2025).
- Exit: ~ $74 (late September 2025).
- Timeframe: ~3–4 months.
🔢 Profit Calculation (Options):
- Buy 1 contract (100 shares) at $41 = $4,100 investment.
- Sell 1 contract at $74 = $7,400 return.
- Net Profit = $3,300 (+80.5%).
For scale:
- 5 contracts = $20,500 → $37,000 return → $16,500 profit.
- 10 contracts = $41,000 → $74,000 return → $33,000 profit.
That’s the power of LEAPS when technicals, fundamentals, and catalysts align.
🔑 Why This Trade Worked
- Technicals Confirmed the Bottom
AMD’s RSI below 30 and MACD crossover signaled momentum reversal from an oversold valley. - Institutional Accumulation
Vanguard, Goldman Sachs, and Jane Street added millions in shares during the May–June dip, confirming conviction. - Product & AI Catalysts
AMD’s MI300 GPU and Zen5 CPU launches positioned the company as a leader in AI and high-performance computing. - Options Liquidity & Skew
LEAPS at the $100 strike had massive open interest and favorable call skew — ensuring clean execution and tight spreads.
📌 Lessons Learned
- Defined Risk, Amplified Reward
Compared to buying shares (+25%), options delivered +80% in the same timeframe with a fraction of the capital. - Follow the Smart Money
Institutions don’t add millions during selloffs without conviction — a clear leading indicator. - Catalyst Timing Matters
Entering ahead of July earnings and product cycles gave this position extra lift.
🚀 Don’t Miss the Next Opportunity
If you had followed this AMD trade, even a modest $4,100 contract would have grown into $7,400 in under four months. Scaling up magnified returns dramatically — and this is exactly why we focus on options.
This profit update isn’t about hindsight. It’s about showcasing what’s possible when you combine disciplined analysis with well-structured trades.
👉 To make sure you don’t miss opportunities like this again, check out our latest article here:
CarMax (KMX) Stock Options Analysis: Oversold Setup with a Vega Catalyst Play
📜 Disclaimer
This content is for educational and informational purposes only and should not be considered financial advice or a recommendation to buy or sell any securities. Trading options carries significant risk and is not suitable for all investors. Always do your own due diligence and consult with a licensed financial advisor before making investment decisions. Past performance is not indicative of future results. You are solely responsible for your trading decisions.
