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Open original source ↗🚨 Option: Selling calls is looking juicy on $AMD
Overbought on weekly & daily. 11% yields if you sell calls 86 days out. Those options also returned ~10% today on the selloff. We pitched this to course members this morning *before* the selloff.
Now, fundamentally:
AMD got a bit rich. Its net margins have a lot of growth ahead of them. But I expect their net margins to double from 17%. If they do, AMD still has ~30% upside. BUT... NVDA, AVGO, and others in hardware have 2x upside. So AMD ran a bit ahead. Great company; great potential.
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I fully exited my $AMD position at $617/share. I’m still bullish on the company. I’m confident AMD will become much bigger than it is today. But the stock is simply no longer as compelling as it was in 2025, when it traded at ~20x forward earnings. $AMD has gone 8x in just 17 months. And parabolic moves like the one we saw earlier this week usually mark the end of a move, not the beginning. The thesis hasn’t changed. The risk/reward has. There are far better opportunities out there that aren’t nearly as extended as the market is right now.
danielisdizzy ↗