Advanced Micro Devices Inc (AMD)

[spokeshave]

YB: Re: AMD price move

I think that the 200-day MA is probably a pretty good indicator of the near-term top. It has shown strong resistance in the last few months. Additionally, I would not personally hold AMD through earnings. I see no real surprises to the upside. I do not believe that revenue will top about 690MM, which would be essentailly flat Q-on-Q. I also see no likelihood that Intel will bring any great coattail effect to the table with its earnings. I expect a Q-on-Q drop for Intel. So, my trading strategy will be to sell near the 200-day MA (about $7.40) or sell just before earnings, whichever comes first.

As for when to write covered calls, hedging with options is not part of my strategy, but there are several others here who are deeper into it than I. Maybe Elmer could weigh in. Howevever, I consider the almost obligatory post-earnings AMD retreat to be questionable now. It looks like we will be going to war, and the market likes the lessened uncertainty. Additionally, everyone is expecting a war rally. I anticipate a nice little bull rally over the next couple of months - even longer if the war is short.

All IMHO.