AMD – 2021

This AMD trade was a once a year type of trade. Everything setup perfect. Price broke out the morning following an after-hours earnings report which was a beat. If you look closely at the daily chart you can see that price gapped-up to open from dipped nearly down to previous lows. My initial reaction was: hmm weird. Especially, because this was my top play going into the week assuming a bullish ER. Big volume came in shortly after the dip and knew we had a runner.

$95 breakout was the entry. You may ask why since it was not the all-time high. My reasoning was that it was a weekly breakout and on the weekly chart the $95 level was hit three times. On the weekly chart the $95 appeared to be the key level despite the daily chart suggesting other possible levels.

Price ran up 17% in just 6 trading days. Every intraday dip was bought up. It was an extremely lucrative options play.