Advanced Micro Devices
(AMD) opened at $4.90. So far today the stock has hit a low of $4.695 and a high of $4.91. AMD is now trading at $4.73, up 0.01 (0.21%). After hitting a one-year high of $16.19 last July, the stock hit a one-year low of $4.53 yesterday. Shares of AMD are rising this morning after rival Intel Corp.
(INTC) posted a second-quarter profit of $1.6 billion, or 28 cents per share, ahead of analysts' estimates of 25 cents per share and reflecting strong demand for processors. AMD is also getting a boost from news that INTC may face new charges from European antitrust regulators, according to a report in The Wall Street Journal. Technical indicators for AMD are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider a January covered call at the $5 range. AMD hasn’t been below $3.75, which would be the break-even point, at all in the past year and has shown support around $4.50 recently. This trade could be risky if today's encouraging Intel results are a result of them taking even more market share from AMD, but even if that happens, this position could be protected by the 30% downside protection on this trade. [LHF- Seven Summits Strategic Investments NewsBite]