Huge volume on AMD Dec25 puts

Discussion in 'Options' started by uninvited_guest, Nov 25, 2005.

  1. Since Monday (Nov 21) the Open Interest on the AMD Dec25 Puts has gone from 4,800 to 18,700. Tack on todays Volume of 10,000 and the Open Interest will be about 28,000 this Monday (Nov 28), assuming these were new positions.

    Placer Dome Inc. (PDG) had huge Call buying just before a take over anouncement and I assume that someone thinks AMD is going to drop below $25.00 by December 16, 2005.

    Any comments?

    PS...I bought some AMD Dec25 puts myself on Monday morning and have noticed this huge increase in Volume and Open Interest
     
  2. Thanks for the tip.
     
  3. You're welcome.
     
  4. just21

    just21

    How did you find this? Are you using the opscan in optionvue?
     
  5. Through Yahoo quotes. I know the Open Interest since Monday because I bought some Dec25 puts myself and have been checking the activity.

    All of this week a huge amount of AMD DEC25 put contracts are being opened up for some reason.
     
  6. cnms2

    cnms2

    AMD had a good runup (almost doubled) starting from May, and on Monday reached a 4 year high. Its IV collapsed from 55% to about 40%. If you look at the last three year chart AMD followed almost the same pattern with a peak in November / December. It may be just some investor trying to protect his gains. I don't believe that this increase is due to somebody initiating a naked put sale, but it could be a put calendar.

    Buying some AMD Dec 25 puts seems a sensible decision at this time. :)
    Code:
    Date AMDXE: Close Open High Low Close Volume 
    11/21/2005  27.04 0.50 0.50 0.35 0.40 9,247 
     
  7. cnms2

    cnms2

    Here there's AMD three year weekly chart ...
    • Quote from cnms2:
      AMD had a good runup (almost doubled) starting from May, and on Monday reached a 4 year high. Its IV collapsed from 55% to about 40%. If you look at the last three year chart AMD followed almost the same pattern with a peak in November / December. It may be just some investor trying to protect his gains. I don't believe that this increase is due to somebody initiating a naked put sale, but it could be a put calendar.

      Buying some AMD Dec 25 puts seems a sensible decision at this time. :)
      Code:
      Date AMDXE: Close Open High Low Close Volume 
      11/21/2005  27.04 0.50 0.50 0.35 0.40 9,247 
     
  8. Volume on AMD Dec25 puts was 6,000 today (Monday Nov 28), bringing the Open Interest up to 30,000 (if these were new postions, which I think they were).

    In 1 week the Open Interest has gone from 4,800 to 30,000.
     
  9. cnms2

    cnms2

  10. cnms2

    cnms2

    Look at AMD collapsing ...! $25.7 -3% Tue 11/29 10:30 am
    It looks like someone new something :eek:
     
    #10     Nov 29, 2005