AMD on Sale

Shares of AMD trade around $78 down from a recent high in January of $99.23, the industry has experienced supply shortages which has caused valuation concerns of chip makers. Intel and Micron are trading at or near 52 week highs and we believe that the selloff in AMD has been overdone. The product lineup is as competitive if not more in demand than Intel's, and Microsoft recently announced a switch to AMD chips to power Surface tablets.

In case the selling is not over yet, or if the overall market continues to drag lower, we'd like the opportunity to buy into AMD at a cheaper price or to make a little money from selling Puts. We sold the May 2021 $65 Puts on AMD for $1.17 today, which expire in 63 days.