AMD Stock May Have Much Further to Go Based on Analysts' Estimates

Advanced Micro Devices (AMD) stock is up over 87% YTD, including a rise of 19% in the last month alone. However, as of June 16 AMD stock is at $120.08, up just $1.87 or 1.58% since May 31 when it closed at $118.21. However, based on average analyst earnings estimates, the stock may have much further to go. That is good news for investors who short out-of-the-money (OTM) put options for income plays.

In fact, we discussed this trade last month on May 28, “High Put Premiums On Advanced Micro Devices Stock Make Shorting Them Attractive For Income.” At the time we discussed shorting the $110 strike price puts expiring on June 16 for $1.12 premium and shorting the $113 strike price puts for $1.56.