Swing Trade Idea (AMD) – July 20, 2023
OptionsPlay’s bearish trade for Thursday, July 20th is Advanced Micro Devices, Inc. (AMD). AMD is part of the Technology Sector, which has performed at 3.82% over the last month, with AMD underperforming at -3.04% over the same period.
AMD traded into an area of resistance at $120 from where it is pulling back. With expected earnings on August 1 to be lower, we believe that this stock will not trade higher throughout this trade with the next support at around $100.
As a close, if AMD were to trade above $123 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $7.66.