AMD has had an amazing run over the last month on the back of positive analyst comments and the announcement of one breakthrough device after another. However, chip stocks in general look overextended here and AMD is no exception.
Take a look at what I am seeing on the hourly chart:
We have a confirmed 13/30 crossover to the downside and AMD is trending below the hourly lines, which tells me that the upward trend has already started to shift. With it being a short trading week, I think we will see a good amount of profit taking which will drive shares lower.
I will go with AMD Dec 13 2019 39 P @ $1.30. I am looking for the 13/30 crossover to continue to drag AMD down to the 200-MA around $36, which is my target for this trade. I will have to stop out of the puts if AMD makes its way back up to new highs around $41.5.