I Told You How to Trade AMD Stock to $200. Now That It’s an ‘AI Hero,’ Here’s 1 Way to Play Its Next Move.

Core Insights - AMD has recently partnered with OpenAI, which will utilize its chips for AI infrastructure, and OpenAI has the option to purchase up to 10% of AMD stock under certain conditions [5]. Group 1: Stock Performance - Since the article published on August 6, AMD's stock has experienced significant volatility, moving 10% in either direction but ultimately closing the period roughly flat [3]. Group 2: Investment Strategy - The current situation presents both long-term implications and potential short-term risks for AMD, making it an ideal candidate for a collar strategy, which involves buying the stock while also purchasing a protective put and selling a covered call [6]. - Two strategies are suggested for investing in AMD: buying a smaller amount to reduce risk or employing an option collar to manage potential losses [6].