AMD's run into resistance: looking at implied vol
Watching $AMD's move today, pretty impressive push, hitting close to 584.73 earlier. It's now sitting around 580.91. That's a good chunk of change in one session. My concern here isn't the momentum itself, but the level it's pushing into. We're right up against that prior daily high from a few weeks back. It feels like a key resistance zone.
What I'm curious about now is how implied volatility is reacting at these levels. If we see IV start to compress even with this upward move, it suggests a potential exhaustion or at least a lack of conviction from the options market that this rally has much more juice without a pullback. If it stays elevated, or even spikes higher, then there's still a belief in big moves, up or down. A failed break above 585 with a drop in IV would be a strong signal for me to reconsider long positions or look for short opportunities with defined risk. The risk to this thesis, obviously, is a clean break above 585 on significant volume, in which case this resistance zone just becomes support, and we look for the next leg up.
That's a good point about the prior daily high; it definitely looks like a significant resistance level. Have you checked the volume on these pushes higher? Sometimes that can give us a clue about the conviction behind the move.