Credit put spread analysis · · Good setup
Recommended credit put spread
AI-suggested setup based on the latest screen. Expiration Jun 25, 2026.
- Width
- $10.00
- Estimated credit
- $4.63
- Max risk
- $5.37
- Return on risk
- 86.2%
- Expiration
- Jun 25, 2026
For entertainment purposes only. Not a recommendation to trade. Disclaimer.
Trade history on AMD
Every live credit put spread we've opened on this ticker — what was traded, when, and how it ended.
| Opened | Strikes (S/B) | Expiration | Credit | P/L | Outcome |
|---|---|---|---|---|---|
| May 7, 2026 | $385.00/$380.00 | Jun 11, 2026 | $1.43 | — | Loss · Paper fill anomaly — no Alpaca position |
Earlier analyses
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The setup is weak and warrants a PASS. AMD has surged 100.5% over two months, indicating extreme momentum that is likely unsustainable. The -5.69% drop is a minor correction within a parabolic move, not a stable entry po…
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The -5.69% drop in AMD presents a mixed opportunity for a credit put spread. On the positive side, the stock is still up massively (100.5% over 2 months), suggesting the recent pullback could be a healthy consolidation w…
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Rating this a 2.5 (Weak setup, better opportunities exist). While the -5.69% drop creates a potential entry point, the overall context is highly problematic for a credit put spread. The stock is up over 100% in just two…
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Analyzing AMD after a -5.27% drop to $408.46. The stock is up nearly 80% over two months, indicating a strong uptrend (Trend: 83%), but this also suggests it may be extended and due for a consolidation or pullback. The 4…
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The setup is weak and does not meet our criteria for a moderately aggressive entry. While the stock dropped 5.27%, the context is critical: AMD is still up nearly 80% over the last two months, trading at a very high impl…
AI analysis
Options Trading Expert · May 19, 2026
The sharp -5. 69% drop on a Doji reversal day presents a compelling entry point for a moderately aggressive trader. The stock has had a massive 100.
5% run-up over two months, making this pullback a healthy and expected consolidation. While the Safety score is low at 6/9, the high IV of 60% provides attractive premium for sellers. The sell-off likely shakes out weak hands and offers a better risk/reward entry than chasing the highs.
A credit put spread capitalizes on elevated volatility and the strong underlying uptrend (Trend: 95%), betting the dip finds support. The key risk is that this is the start of a deeper correction after such a parabolic move. However, the defined risk of the spread limits downside.
Selecting strikes 5-7% out of the money provides a cushion while still capturing meaningful premium. The calculated spread meets the critical credit/width ratio of >0. 25, ensuring we are adequately compensated for the risk taken.
With expiration in 37 days, there is sufficient time for the stock to stabilize or resume its trend, while time decay works in our favor. This is a strong, but not perfect, setup given the recent volatility and extended run.