Reported 2 days ago
In light of AMD's recent announcement of a partnership with OpenAI, which boosts its market potential, investors are advised to employ a collar strategy to hedge against potential risks. This involves buying AMD shares alongside protective puts and selling covered calls, thereby minimizing exposure while allowing for upside potential. With strategic strike prices set at $200 for puts and $250 for calls, the collar strategy offers an attractive risk-reward ratio, making it a viable option for investors navigating the stock's volatility.
Source: YAHOO