How trade is showing support for AMD

Advance Micro Devices are down some 60 percent in the last year, but one trader is looking for the chip maker to hold current levels through the first half of 2013.

A block of 2,431 July 2 puts was sold for $0.28, according to optionMONSTER's tracking systems. The volume was above the strike's open interest of 2,136 contracts at the beginning of the day, indicating new activity.

AMD is up 1.32 percent to $2.31 in midday trading, less than half of the $5.53 price that opened 2012. Shares had been climbing from levels near all-time lows in November but have pulled back in the last week.

Today's put seller is looking for AMD to close above the $2 strike price at expiration in mid-July. The trader will face the obligation to buy the shares if they are below that level, at an effective price of $1.72 when the $0.28 credit from the put sale is included.

AMD saw similar put selling in July contracts on Dec. 2 and drew bullish call buying the next day in the April options. (See our Education section)

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