Volume Spike Investor

Advanced Micro Devices Inc. (NYSE: AMD) was not on the options most active list late in the morning. But a 12:00 AM EST review showed that there had been some 9,044 contracts traded in the JUL08 $7.00 CALL OPTIONS. The Open interest before today was 35,429 contracts. Since then there has been more activity in just the last few minutes. At 12:11 PM EST we have now seen a total of over 19,700 of those JUL08 $7.00 CALLS trade hands. The stock is down 5% at $6.65.

There have been rumors that the company is going to raise cash (to the tune of $1 Billion) but we have yet to get anything on the validity of that. Until there is news we are only putting it in the hearsay category or nothing more than noise.

But this sudden options volume is worth looking into. Going farther out, we have seen over 5,000 contracts trade hands now in each of the JAN09 $7.50 CALLS and JAN09 $10.00 CALLS.

The stock has seen 15.7 million shares trade hands and the average daily volume is north of 22 million shares.

Jon Ogg
June 23, 2008