Thomson Reuters FILE PHOTO: Visitors look at motherboards being displayed at the AMD booth during the 2012 Computex exhibition at the TWTC Nangang exhibition hall in Taipei
- AMD tends to rally after Consensus, the annual blockchain conference in New York.
- JPMorgan recommends buying AMD calls with a June 13 expiration.
- Follow AMD's stock price in real-time here.
AMD's crypto boom may be over, but JPMorgan still thinks it's a solid investment as one of the world's largest blockchain and cryptocurrency conferences, Consensus, kicks off in New York.
"Over the last three years, AMD has staged significant rallies following the blockchain technology summit, Consensus," the bank's equity derivatives strategy team told clients Monday.
AMD reported first-quarter earnings earlier this month that easily beat Wall Street expectations, sending the stock surging above $10. It's continued to climb throughout the month since, even as crypto prices decline. Some analysts were worried that used graphics cards that were snatched up to mine cryptocurrency amid the crypto craze, might flood the secondary market and hurt AMD's sales of new chips.
So far that hasn't been the case. JPMorgan says there's still room left to run and recommends buying calls with a June 13 expiration.
"We like the reward-risk of owning upside in AMD given its historical returns following the summit, cheap implied volatility and high short interest, which could add a short squeeze component to the trade," the bank said.
"Ahead of this week's summit, we recommend investors purchase AMD June 13 strike calls for $0.22, indicatively ($11.95 reference price), taking advantage of AMD's two year low implied volatility."
Shares of AMD have risen 11% this year.
