Video summary
Melissa Armo from The Stock Whisperer provides a detailed review of AMD's recent performance, highlighting the stock's significant gap following a strong upward trend throughout 2026. Although the technology sector has recently reached numerous all-time highs, the market is currently facing a period of consolidation where the stock struggles to maintain its previous momentum. Despite this broader stagnation, Armo identifies a specific opportunity in AMD by utilizing put options with a strike price of 485, which she purchased on August 17th when the stock closed at 506. Her strategy focuses heavily on "follow-through," a key metric she uses to validate trades, and she notes that while the stock dipped nicely on the day of purchase, today offers the necessary downward momentum to realize profits before the options expire on Friday.
The core of Armo's analysis revolves around the importance of observing price action in real-time, specifically looking for large red bars that indicate sustained selling pressure when trading puts. She explains that while the stock is considered expensive and the options are not cheap, they remain a more cost-effective alternative to traditional day trading given the current market conditions. Throughout the session, AMD demonstrated substantial movement, with the price dropping significantly from its opening levels and approaching the 416 mark, though it did not quite reach the absolute low of 462.55. This decline represents a move of over twenty dollars, which Armo views as a successful execution of her trade plan that has already hit several profit targets.
Looking ahead, Armo advises traders to remain vigilant and watch the stock's performance for the remainder of the day and into tomorrow morning to determine if the downward trend continues. She emphasizes that while one could exit the position now with gains, holding allows for further observation of where the market might go as August progresses. Her commentary serves as both an educational example of her trading philosophy and a promotional note for her Gap Options Newsletter, which she invites viewers to subscribe to without any prerequisites. By sharing her insights on AMD and the current market dynamics, she aims to help investors navigate the volatile tech sector while providing actionable strategies for those interested in options trading.
Read the full video transcript
Hello there, everyone, and welcome. This
is Melissa Armo with The Stock
Whisperer, and I'm reviewing AMD. This
had a very nice gap yesterday and is
following through today,
uh which is great. Again, one of the
things that I look for and specialize in
is follow-through, in fact. So,
yesterday I called a put, uh the 485s,
and that is or has gone today, I should
say. Um so, again, let's go back to the
day I did the trade.
8/17, we closed at 506.
This was the day I called the 485 puts.
It opened at 47.56.
Technically, you you could have got out
yesterday. It actually did fall
yesterday pretty nicely, but today is
the day where we're really getting some
nice momentum here. So, you could be out
of this
uh with profit because it expires
Friday, or you could still be in it to
see where we go. 12:15 on a Wednesday.
Again, when I'm trading, when I'm doing
a put, I'm looking for follow-through to
the downside.
Big fat red bar.
If I'm doing a call, I'm looking for
follow-through to the upside, a nice big
fat green bar. So, again, a put is a
short. So, I mean, this is actually an
interesting chart because this stock, or
this whole sector, I should say,
has been so strong for so long and made
a bazillion brand new all-time highs
just in the last few months in 2026, and
now just can't seem to get a breath of
life,
um actually, and that is also dragging
down the market. So, this is an
expensive stock. You know, the puts
aren't cheap, either, but hell of a lot
cheaper to do an option in this than to
do um a day trade, although I will day
trade this, too. I mean, the spread
isn't bad here if you look at this.
You know, 30, 40 cents, whatever. So,
nice trade here this week. Again, you
can watch it, see where it goes here the
rest of today, see if we're down again
tomorrow morning. But again, today is
the type of day when you get the nice
fat red extension that you do have to,
you know, you do have to be on top of
the trade and watch it. It's gone to
several targets here and it's had a nice
move. Again, the low today was four, we
didn't quite get down to 416. 462.55.
I mean, what do you want? It's more than
20 bucks, so nice move here for AMD.
We'll see what we get tomorrow and
looking forward to uh the rest of
August. Email me at
melissa@thestockswoosh.com
if you're interested in signing up for
the gap options newsletter. There are no
prerequisites. Thanks.