AMD continues to print new all-time highs after successfully bouncing from its recent pullback. Since April, every meaningful dip has been met with buyers, creating a powerful trend that keeps pushing the stock into fresh highs.
At the same time, the weekly chart is starting to show signs of a mature move. RSI remains elevated, and the weekly MACD recently hinted at a possible momentum rollover before today’s strong advance pushed the stock higher once again.
That combination is exactly what makes this Call Broken Wing Butterfly interesting.
The trade is built around the idea that AMD does not need to collapse for the position to work. After months of persistent upside expansion, the stock simply needs to start losing momentum over the next 32 days. A period of consolidation, slower upside progress, or a modest pullback would be enough to support the thesis while keeping risk fully defined.
How the Trade Was Selected
AMD appeared near the top of the Options Strategist Call Broken Wing Butterfly rankings, supported by an RSI reading above 65. The stock was not being selected because it looked weak. Quite the opposite. AMD had already recovered from its latest pullback and was trading back near all-time highs, extending a trend that has been in place since April.