Options Trading Strategies for Upcoming Earnings: AMD, Disney, and More

Earnings Season Options Activity

• 🎯 Earnings season is approaching with major companies like AMD, Eli Lilly, Uber, McDonald's, Palantir, and Disney set to report.
• 📈 Traders are actively positioning in the options market to anticipate significant price movements.

Key Company Earnings and Expected Moves

• 📊 Disney is expected to see a move of approximately 6% following its earnings report.
• 🚀 AMD is anticipating a move of around 8%, with significant options activity observed.
• 📊 Caterpillar and Uber are expected to move about 4% and 7%, respectively.
• 💡 Eli Lilly is also projected to experience a 6% price change post-earnings.

Notable Options Trades for AMD

• 💰 The weekly 190 calls for AMD saw substantial trading volume, with over 30,000 contracts changing hands at nearly $210 each.
• 🧠 This activity is largely attributed to institutional flow, indicating a bet on a significant upside move for AMD.
• 📈 Such a move could potentially return AMD more than halfway to its all-time highs from early March of the previous year.

Analyst Perspectives on AMD

• 💡 One analyst expresses a bullish outlook on AMD, citing its potential in the AI chip market and its solid position as a second choice to Nvidia.
• ⚠️ Another analyst expresses caution, preferring to avoid the binary earnings risk and highlighting concerns from past earnings reports.
• 📈 While acknowledging AMD's potential upside and AI story, this analyst would rather wait for more clarity than play the immediate earnings event.