Big Bet Placed on AMD Stock Rising

Someone is making a significant wager on the future of chipmaker AMD's stock. Recent activity in the options market shows a large investment, totaling about $1.1 million, placed on AMD shares climbing higher in the coming months. This substantial bet was made using a type of contract called a "call option." Think of it as buying the right to purchase AMD stock at a specific price – in this case, $190 per share – by a certain date, which is July 18, 2025. When an investor spends this much money on call options with a target price noticeably above where the stock is currently trading (AMD is in the $160s), it generally indicates a strong belief that positive events or market trends will push the stock price up. This bullish options trade comes amid mixed recent performance for AMD shares. While the stock has had a strong year overall, gaining around 35% so far, it has seen a slight dip of about 4.3% in the last month. However, many professional analysts who follow AMD remain optimistic, with average price targets sitting around $195, which is close to the target price of this large options bet. While one trade doesn't predict the future, this notable investment highlights that some investors are feeling confident about AMD's potential.