A short and long term look at AMD

This is not a fundamental view though I am bullish on many of the XSD majors in the near term if the market supports the upside move.

First, take a look at the AMD monthly ( ), all the way back to 2000. Using the Fib projection of the parabolic move in 2000 & 2006, our potential upside target in the current move would be at 37.5 level, with a linear projection in the timeline to hit that target by August 2019. So a great swing position would be to add long term calls on large dips to capture the potential upside completion.

If you are heavy delta positive with AMD long term calls, or just holding the shares from the 10$ levels, this is a good area to take profit or add strong hedges to protect against a downside move in the shorter term.

While it seems daunting to take a short position in the middle of such a strong uptrend, there are many ways to hedge (even a hedge) if you are short the stock, by using covered calls or protective put strategies. On that note, here is a trade idea. The daily is showing a potential topping convergence in both price action and the 200EMA right around the levels at 32.5-33 ( ). And given that AMD has moved more than 200% in the last 5 months, I feel pretty comfortable with the potential r/r in taking a short term bearish bias by this week's close.