If you hold shares in the chipmaker, the market is pricing a journey that could either double your money or cut it in half over the next year, and you’re buckled in for the whole ride.
For a shareholder in Advanced Micro Devices (AMD), the future holds two very different destinations
The options market, our cleanest gauge of potential stock moves, is pricing a plausible path to a share price near $1094.29 over the next year. It is also pricing a plausible path down to around $270. If you own the stock, you own the full breadth of that uncertainty, whether you’ve ever looked at an option or not.
Just How Wide Is the Range Priced Into Your Shares? Let’s put some hard numbers on that risk you’re carrying. With the stock trading around $544.43, the one-year options chain implies a 68% probability, think of it as the market’s main fairway, that the stock will land somewhere between that $270 floor and the $1094.29 ceiling.