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Trade of the Day: Advanced Micro Devices, Inc. (NASDAQ:AMD)

I'm staying bullish for the time being


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Our indicators are giving buy signals this week, a slight upgrade from neutral-to-bullish readings last week. The market broke out of its narrow trading range and, of course, when it does that it usually moves pretty quickly, which is what we’re seeing right now.

Our indicators are not overbought at this point, which is interesting, and there are no signs yet of any correction, so I continue to feel that the market will keep rallying from this level.

While I’m somewhat skeptical that these valuations can be maintained, we don’t want to buck the tape. When a market breaks out of a trading range, it usually moves up for about as long as it was moving sideways. For that reason, I’m going to maintain a bullish posture, and here’s my option recommendation for today:

Buy to open the Advanced Micro Devices, Inc. (NASDAQ:AMD) Apr 14 Calls (AMD170421C00014000) at $0.75 or lower.

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