Advanced Micro Devices (NASDAQ:AMD) stock has stalled in the past two months amid profit-taking and the ongoing jitters in the semiconductor industry. After peaking at $582 in June, it has slumped by 18% to the current $476, and the options market points to a double-digit move after its earnings.
AMD Stock to Have a Big Move After Earnings
Top technology companies have had large moves after publishing their earnings, and AMD may experience the same. The options market shows that the company has an implied volatility of about 75%, with the put/call option moving to 0.68. (A figure less than 1 signals that more investors have placed calls than those who have placed puts.)
The options market is also pricing in a 12% move in either direction. Such a move in the downside would bring it to $417, its lowest level in July. On the other hand, a 12% move to the upside will push it to $537.
In the last earnings report, AMD stock jumped by over 20% after management highlighted its growth in the data center industry. Before that, in February, the stock tumbled by over 15% in a single session after its earnings.
