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Options Trading Strategies | Single-Day Surge of 9%! A Detailed Analysis of the Long-Term Stable LEAPS Call Strategy Using AMD and Google as Examples

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Recently, $Advanced Micro Devices (AMD.US)$ Just recently (November 11), the Financial Analyst Day event was held, with the stock price reacting strongly on November 12, surging 9% in a single day, and $Alphabet-C (GOOG.US)$ the upcoming launch of a powerful chip optimized for AI workloads has also generated considerable buzz.

So today, we will focus specifically on AMD and Google, discussing the main opportunities and challenges facing these two companies. We will also provide a step-by-step guide on how to use the LEAPS CALL strategy to seize their long-term potential while mitigating short-term volatility risks. By the end of this article, you'll be ready to take action!

AMD: Rapid Catch-Up Player in the AI Chip Sector with Growth Targets of 35% + 80%

$Advanced Micro Devices (AMD.US)$ The Financial Analyst Day unveiled exciting data:The company forecasts a compound annual growth rate (CAGR) of over 35% in revenue for the next 3-5 years, with its AI data center business growing at an astonishing rate of 80%.Meanwhile, non-AI businesses such as gaming and embedded systems are also expected to achieve double-digit growth, providing a stable foundation.

The core support behind the 80% growth story of AI data centers comes from a milestone collaboration with OpenAI. According to disclosures, AMD has offered OpenAI the opportunity to purchase warrants for 16 million shares at an exercise price of just $0.01, with vesting conditions tied to OpenAI’s procurement volume and AMD’s stock price. This deeply integrated partnership is expected to begin deliveries in the second half of 2026 and could contribute up to 43% of AMD's total revenue over the next five years, forming a central pillar for achieving the target of $20 earnings per share (EPS).

What exactly do the figures of 35% and 80% represent?

A 35% overall annual revenue growth target implies that the company must increase its revenue by 4.5 times within five years (e.g., from $25 billion to over $100 billion). The 80% growth target for the AI data center business is even more ambitious, betting on the AI industry transitioning from the 'training' phase into a period of explosive 'inference' demand, requiring a chain-like surge in data center computing power.

This represents an extremely aggressive goal within the industry, essentially requiring AMD not only to maintain technological leadership but also to successfully transform from being a 'single-chip vendor' to a supplier of 'comprehensive AI computing systems,' integrating computing power, memory, interconnects, and energy efficiency. Any misstep in capacity, technology, or market execution could lead to the collapse of these goals.

Given such high targets, what specific product developments can be anticipated?

$Advanced Micro Devices (AMD.US)$ AMD’s Instinct MI350 series is described as the fastest-deployed product in the company’s history. The upcoming mass production of the Instinct MI400X chip supports a 'rack-scale' computing architecture, integrating 72 chips to meet the demands of ultra-large-scale AI models, with the potential to catch up to NVIDIA in terms of technology.

Furthermore, AMD anticipates that by 2027, the AI computing performance of the Medusa processor will be ten times that of its 2024 chips. The Helios system, expected to launch in the third quarter of 2026, will integrate CPU, GPU, and interconnect technologies, forming a complete AI solution.

However, the challenges faced by AMD should not be underestimated:

In the data center market,$Advanced Micro Devices (AMD.US)$ its scale remains far behind the leader NVIDIA (with a market share exceeding 90%) and the second-place Broadcom, making it challenging to achieve a double-digit market share target.

Moreover, the market has already placed high expectations on AMD, with its stock price requiring strong performance for support. The ambitious 35% GAGR target and heavy reliance on OpenAI order fulfillment mean that any product delays or yield issues could trigger significant valuation corrections.

Additionally, the recently released third-quarter earnings showed record-high revenue of $9.2 billion, with data center revenue rising 22% year-over-year to $4.3 billion, primarily driven by robust sales of EPYC processors and MI350 GPUs. However, the stock fell more than 6% in after-hours trading, likely due to executive warnings about shipment restrictions on certain AI chips in China, which may continue to pose challenges going forward.

From a technical perspective:After the sharp surge on November 12, the stock price stabilized above all major moving averages, indicating a positive medium- to long-term trend. The RSI is at a moderately strong level without showing negative divergence, suggesting upward momentum remains intact but with caution warranted for potential pullbacks. The MACD is negative, and the DIF line shows signs of a downward crossover, indicating short-term adjustment pressure.

In terms of trading volume, the single-day volume on November 12 reached 108,900 shares (a one-month high), with a turnover rate of 6.79%. Combined with the day’s gains (closing price of $258.89, up 9.00% from the previous day), this indicates high investor participation, potentially catalyzing continued trends. On November 12, net inflow from major investors amounted to $47.895 million, but overall net outflow reached $204 million, reflecting intense market competition between buyers and sellers.

The resistance level can be monitored around the recent high of $267.08; a breakout could open further upside potential. Short-term support can be observed near the recent low of $224.64, with key psychological levels such as $250 and $240 also acting as potential short-term supports.

Options data showsthat as of the U.S. market close on November 12, implied volatility (IV) stood at 57.22%, placing it at the 76th percentile over the past year, signaling heightened expectations for short-term stock price volatility. The put/call volume ratio significantly retreated from previous highs but rose to 0.66 on November 12 from 0.52 the day before, indicating notable competition between bullish and bearish forces.

Large option orders indicate that yesterday’s trades were predominantly bullish. In the buy Call strategy, $270 is a key price level, and these Call purchase orders with a strike price of $270 are mostly short-term end-of-contract options, betting on a short-term breakout above this price.

Summarizing signals from both technical aspects and options, it suggests that the medium- to long-term trend remains positive. Short-term adjustment pressures exist, and current market dynamics could lead to significant volatility. However, expectations for a short-term breakout above the resistance level remain strong.

Google: Dual Growth Drivers of TPU + Cloud Business, the Hidden Champion of AI Infrastructure

$Alphabet-C (GOOG.US)$ The recently released third-quarter earnings exceeded expectations across the board, with quarterly revenue surpassing $100 billion for the first time (reaching $102.35 billion, up 13% year-over-year), and earnings per share at $2.87 (up 33% year-over-year).Core businesses achieved double-digit growth.。

What are the main drivers of core growth?

Technically,Google's seventh-generation Tensor Processing Unit (TPU), Ironwood, is set to launch soon.Compared to the previous generation, its training and inference performance has increased fourfold. A single supercomputer unit can connect 9,216 chips and access 1.77PB of shared memory, addressing data bottlenecks for large-scale models. AI startup Anthropic plans to use up to one million of the new TPUs to run its Claude model. Analysts estimate that if Google’s TPU business were merged with DeepMind, its value could reach $900 billion.

The cloud business also confirmed high growth. In Q3, Google Cloud reported revenue of $15.15 billion (a year-on-year increase of 34%), with a backlog of orders reaching $155 billion. The number of cloud deals worth over $1 billion signed in the first nine months of 2025 exceeded the total from the previous two years. Its growth rate, which stands between Microsoft Azure (40%) and Amazon AWS (20%), continues to gain market share.

$Alphabet-C (GOOG.US)$ The company's AI ambitions are evident as it significantly raised its 2025 capital expenditure forecast ceiling to $93 billion, an increase of $8 billion from prior guidance, primarily for AI infrastructure development. Recently, Google issued $24 billion in bonds and invested $6.4 billion in building a new data center in Germany.It is aggressively accelerating the global deployment of AI infrastructure.。

However, what challenges and risks should be noted?

On one hand, $93 billion in capital expenditures may squeeze short-term profit margins. On the other hand, Google faces fierce competition in the cloud services market from Amazon AWS and Microsoft Azure, requiring continuous investment to maintain its growth momentum. Additionally, Google lags behind in the generative AI application sector and needs to accelerate its catch-up efforts. Other factors to consider include executive stock sales and potentially higher operating costs for overseas operations.

From a technical perspective:As of the close of U.S. markets on November 12, moving averages were in bullish alignment, with the latest share price above the 5-day moving average, indicating the effectiveness of short-term support. The MACD histogram has narrowed, with DIF and DEA approaching convergence, reflecting weakening short-term momentum.

Options data shows:As of the close of U.S. markets on November 12, the implied volatility (IV) was 32.96%, at the 44th percentile of the past year, a relatively low level, possibly suggesting that the market anticipates relatively stable stock price movements in the short term.

The ratio of put-to-call options volume has increased recently; however, the value of 0.58 remains relatively low, indicating an overall bullish sentiment. Nevertheless, there is evident demand for short-term hedging, along with a general slowdown in total options trading volume, suggesting reduced market activity. Large options trades indicate a stronger bullish sentiment in the near term, with significant call buying concentrated around the $290-$295 price range.

In summary, technical indicators and options signals suggest that stock prices are somewhat supported, with a stronger bullish sentiment, though short-term momentum has weakened, leading to a more stable trend.

Long-Term Investment Strategy in AMD and Google: LEAPS Call

For investors who are optimistic about$Advanced Micro Devices (AMD.US)$And$Alphabet-C (GOOG.US)$ long-term AI positioning but are concerned about short-term stock price volatility,a long-term investment strategy using LEAPS CALL can be considered.This strategy involves purchasing long-term (typically over one year) CALL (call options), which grant the buyer the right to purchase a specified quantity of the underlying stock at a predetermined price before the agreed-upon expiration date.

What is the compatibility of this strategy with these two companies? What specific advantages does this strategy offer? How does it differ from directly purchasing shares?

$Advanced Micro Devices (AMD.US)$ The growth story focuses on the explosion of AI businesses over the next few years, with catalyst events such as OpenAI order fulfillment and MI400X chip mass production expected within 1-2 years. In the short term, stock prices are susceptible to industry sentiment and competitor dynamics, resulting in fluctuations.$Alphabet-C (GOOG.US)$ The commercialization of TPU chips and the fulfillment of cloud business orders will also be a gradual process, with an expected continuous contribution to earnings growth over the next two years.

Therefore, for these two companies characterized by 'long-term growth certainty but short-term volatility uncertainty,' adopting a LEAPS Call strategy allows investors to secure future stock price appreciation potential by paying a relatively small premium. This approach smooths out short-term volatility while focusing on long-term growth narratives.

In simple terms, compared to directly purchasing stocks, a LEAPS Call requires only a small amount of capital to bet on an equivalent number of shares, offering high capital efficiency. Moreover, the maximum loss is limited to the option premium paid for the Call, avoiding the downside risk associated with holding shares. Additionally, if the stock price rises as anticipated, the percentage return from a LEAPS Call typically far exceeds that of direct shareholding—though in certain scenarios, it may underperform buying the underlying stock to some extent.

Below, we take"buying one LEAPS CALL" and "buying 100 shares of AMD stock" as examples to intuitively compare these two strategies,based on data from the U.S. stock market close on November 11 (the stock price was $237.52, and the selected strike price near the at-the-money level was $240).

Thus, a LEAPS Call represents a long-term investment strategy that leverages minimal capital for significant potential returns, with returns often far exceeding those of directly purchasing stocks when the stock price rises (though losses can also be significantly higher in many cases when the stock price falls). With limited overall risk, this strategy suits investors seeking long-term gains, fearing short-term volatility, and operating with constrained capital.

Practical Guide: Selecting LEAPS Calls for AMD and Google

When selecting LEAPS Calls, the key considerations include determining the type of strike price (in-the-money / out-of-the-money / at-the-money), Delta value (to choose the appropriate strike price), expiration date, as well as implied volatility (IV) and liquidity factors.

1. First, the selection of in-the-money / out-of-the-money / at-the-money options

● Out-of-the-money Call: The strike price is higher than the current stock price, with the lowest premium, highest leverage, and also the highest risk. Suitable for situations where a significant rise in the underlying asset is anticipated.

● At-the-money Call: The strike price is close to the current stock price, with moderate premium, good tracking of ups and downs, and suitable for neutral-to-bullish scenarios.

● In-the-money Call: The strike price is lower than the current stock price, with the highest premium, almost synchronous with stock price movements, making it ideal for conservative investors.

For$Advanced Micro Devices (AMD.US)$Generally speaking, considering its high volatility, one may opt for slightly out-of-the-money contracts to balance cost expenditure with participation in upside potential.$Alphabet-C (GOOG.US)$In contrast, given its relatively lower volatility, at-the-money or slightly in-the-money contracts can be considered to improve the probability of success.

2. Selection of Delta Value

Delta reflects the sensitivity of the option price to changes in the stock price (between 0 and 1). For example, when Delta = 0.7, it means that for every 1-unit change in the stock price, the option price changes by 0.7 units.

It is recommended to choose contracts with Delta between 0.4 and 0.6.: A Delta that is too low (<0.4) results in limited profitability from stock price increases; a Delta that is too high (>0.6) incurs high premium costs and diminishes the leverage advantage.

3. Selection of expiration dates

Contracts expiring within 18-24 months are preferred.This period not only covers the core catalyst events of the underlying asset (e.g., AMD’s OpenAI computing power deployment in 2026, Google’s large-scale commercial use of TPU) to avoid missing long-term opportunities due to short-term fluctuations, but also mitigates time value decay.

4. Other considerations

One factor is implied volatility (IV). Avoid purchasing when IV is high, as premiums are excessively expensive and the risk of time value erosion is significant. Therefore, for AMD, it may be prudent to wait for a pullback opportunity before entering the market strategically. Another factor is liquidity. Choose contracts with higher open interest and smaller bid-ask spreads.

Click hereYou can enter the options chain page for AMD.Click hereEnter the options chain page for Google-C. After selecting a specific contract, you can scroll down the page before placing an order to view the specific profit and loss diagram at expiration.

(The image is intended for educational purposes only and does not constitute any investment advice.)

5. Lastly, a reminder regarding risk:

Manage your portfolio positions carefully. It is recommended not to allocate more than 20% of your capital to purchase LEAPS CALL options on a single target, as buying options could potentially result in the loss of the entire principal under extreme circumstances. Additionally, consider adopting a phased position-building strategy, gradually increasing your position during stock price pullbacks to lower the average cost.

At the same time, maintain attention on various catalyst events, including AMD's progress in OpenAI collaboration, chip mass production status, Google’s TPU sales data, and cloud business growth rates. If catalyst events fall short of expectations, promptly sell the options to cut losses. Alternatively, establish a clear stop-loss point, such as considering reducing the position or exiting when premium losses reach 50%.

Of course, taking profits can be equally important. Similarly, pay close attention to catalyst events and stock price movements. When catalysts have clearly delivered positive outcomes, the stock price has already risen significantly, or profit margins have reached your predefined profit-taking targets, exit the position in a timely manner to avoid ending up with nothing, like riding a roller coaster.

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