Advanced Micro Devices Inc (AMD)

[JLS]

That guy doesn't know options.

The activity he's talking about is for options that expired this week, and they were traded for the purpose of taking advantage of the 2-day LARGE spike in stock price (by selling Calls they bought in previous days and weeks so that they could bank their huge profit today), which means most options were being sold today, not bought.

How do I know that? If the two-day spike in AMD stock price did not happen, most of the previously purchased Calls would have been left to expire, and that adds nothing to Call option volume. They were only worth something because of the underlying price spike in the shares. No price spike, and most Calls are left to expire worthless.

Options are initially priced using HV (the historical volatility of the underlying stock over essentially one month). If traders were clambering to buy options (which they were prior to earnings), that would cause the market makers in options to raise their prices (so they could put more in their pockets), and that didn't happen yesterday or today, shown by the fact that the HV of the options yesterday was 72% (because of AMD's large price spike) while the IV (reflective of what the options buyers were willing to pay the market makers to buy options) was only 49%).

So I would say that some of the options activity today consisted of option day-traders wile a large majority of the trade consisted of options sellers, who bought their options many days and weeks ago (many of them paying an almost 2:1, IV/HV, premium for them) and were today merely cashing in their options profits.