AMD earnings are a key test for chips and momentum stocks. Here's what the options market is saying

📰 source: cnbc_topnews · 📊 technical

amd reports earnings tuesday after the bell, with options market pricing a 7.3% move — slightly above the last 8 quarter median of 6.4%. the stock's post-earnings swings have been dramatic: it jumped 18% last time and fell 18% the period before. technicals are all short bias, with momentum indicators like stochastics, macd, and williams %r signaling downward pressure.

but the bigger picture is worse. since july 1, 45 tech hardware and semiconductor companies have reported. 38 beat revenue, 37 grew earnings, 36 beat on the bottom line — yet the average price reaction is -13.4%, with 36 of 45 trading lower. the s&p 500 is flat, the nasdaq-100 is down 5%. capital is rotating into healthcare, financials, and industrials.

one options strategy: a calendar spread selling the sept 430 put for $30 and buying the nov 430 put for $53, costing just under $23. profits range from roughly $370 to $525, designed to capture post-earnings volatility crush while keeping downside exposure.

why it matters: amd earnings test a sector where solid results still get hammered, so options signal whether the tech selloff has more room.

source: cnbc_topnews
sentiment: +0.00 · impact: 0.70