AMD Draws Large Volatility Trade

Put trading in Advanced Micro Devices looks to be part of a larger volatility trade.

optionMONSTER systems show that a block of 4,493 April 4 puts was sold for $0.50. The volume was twice the previous open interest, so this is a new position.

Less than a minute later, 179,720 shares were sold for $4.13. Combined with the short puts, this creates an overall delta-neutral strategy that is short-volatility play. So the trader is looking for AMD to stay range-bound and/or for the actual volatility to be less than that implied by the put price.

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