Doubling Down on Volatile Stocks?

One of my favorite stock holdings, and tickers to trade in the options market is Advanced Micro Devices. Also known as AMD.

This stock amounts to my best percentage gains in the stock market last year, in addition to one of my Top Ten traded options tickers.

Why?

When I buy stock, I want to buy in areas that represent growing industries that I believe will continue expanding over time. Within that, I also want to pick top companies, within those industries.

This is how AMD fits into that equation…

Semiconductor companies like AMD, produce components that’re used in electronic devices and communications, like computers, smart phones, GPS devices, and laptops. This is an industry that’s been growing exponentially, and with the ever expanding technology of this time, I don’t expect that to slow down anytime soon.

AMD is my favorite, out of the bunch, for a variety of reasons.

I’ve enjoyed trading it in the options market, primarily due to the high short interest. If we look back two years ago, it had over 30% high short interest. Plus, each time it breached a high, especially on earnings, the move was explosive.

As a momentum trader like myself, this was an ideal options trading situation. 

In addition to the high short interest, it also has a Five Star pattern, solid fundamentals, and leadership. AMD’s Lisa Su has completely turned the company around by improving products and processes (which has produced solid competition for Intel). While AMD has had a very solid run over the last two years, there’s still a lot of market share they could gain.

For this reason, I remain bullish on AMD.

If you want a more in-depth look, check out my full take on CNBC’s “Trading Nation” below…

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