AMD Surges 25%: Key Levels & Options Flow Following Rally

Core Viewpoint - AMD shares surged approximately 25% following significant news regarding an Open AI deal, with a peak increase of 35% observed [1][2] Performance Analysis - Despite the recent surge, AMD's performance remains below the tech sector average, which is up about 29%, while AMD is up around 20% [3] - In comparison to other chip makers, AMD is near the bottom of the performance spectrum, only outperforming Qualcomm [3][4] Market Reactions - Other chip makers like Nvidia, Intel, and Broadcom have also shown positive movements, indicating a headline-sensitive market environment [4][5] - Analyst responses to AMD's news have included price target hikes from firms such as Roth Capital, Benchmark, and Barclays, with Barclays providing the most significant increase from 200 to 300 [13][14] Technical Analysis - Key support and resistance levels are identified around 205 and 186.65, with the potential for trend lines to re-emerge as significant boundaries [7][9] - The stock is currently experiencing volatility, with standard deviation channels indicating extreme movements between plus two and plus three [11][12] Options Market Activity - Options activity is predominantly in calls, with 61% of options traded being calls, and a notable trade involving January 16th 290 strike calls [18][19] - A significant closing trade was observed, where a trader locked in profits while maintaining a portion of their position for potential further gains [19][20]