The AI Chip Bet You Haven’t Heard About (Yet)
The $170 AMD Call Surge: Smart Money or Just Hype?
During yesterday’s Profit Panel, Alex Reid’s unusual-flow scanner flashed a stat too bold to ignore:
A ton of call volume coming in on AMD at a 170 strike price.
Those contracts expire this week, meaning traders are paying up for the chance that AMD vaults past $170 almost immediately.
Kane Shieh called it for what it was: “Wow, that’s aggressive.”
Even Alex tempered expectations, telling viewers he doesn’t think it’ll hit 170 by the end of the week.
So why should everyday investors care about a strike price most pros consider a stretch?
What This Call-Buying Frenzy Really Tells Us
Unusual, way-out-of-the-money call spikes like this act as a barometer of big-money sentiment.
When traders reach for a lofty strike on a tight timetable, they’re signaling a belief — however speculative — that a catalyst could jolt the stock higher.
In AMD’s case, the panel pointed to one clear spark: Nvidia’s earnings on August 27.
As Kane put it, “all eyes are kind of on Nvidia.”
If Nvidia smashes expectations, money could rotate into every semiconductor tied to the AI boom, AMD included.
That anticipation alone has already pumped option premiums across the board.
Even if AMD never touches $170, richer premiums can reward traders who sell options for income. In other words, the bet itself — successful or not — changes the playing field for everyone else.
How Different Players Might Respond
Momentum-chasing traders may wait for AMD to clear its recent highs, then ride a quick burst with small, defined-risk call spreads rather than those lottery-ticket single calls.
Income seekers might view the bloated premiums as a fresh opportunity to sell short-dated credit spreads or iron condors — positions that benefit if the hype fizzles and time decay takes over.
Long-horizon investors, meanwhile, simply circle August 27 on the calendar; Nvidia’s numbers could confirm the AI-chip narrative or pull the rug out entirely.
Whichever camp you’re in, the key is knowing why this sudden burst of optimism appeared and setting your risk accordingly.
Remember: unusual flow is a clue, not a guarantee. Treat it like footprints in fresh snow… evidence someone big is moving, but not definitive proof of where they’ll end up.
Watch the replay here!
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To your prosperity,
The ProsperityPub Team
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