This past week, we saw an unusually large amount of options action in Advanced Micro Devices (AMD). The chipmaker saw over 1 million options contracts trade, which is 2.6x the normal amount. Almost 80% of the volume was in calls, which tends to be a bullish signal.

AMC is up sharply after news that competitor Intel (INTC) was going to have a production delay. One of the biggest trades of the day was a 3,000-lot covered call trade that expires in January. The trade has a yield of nearly 8% based on premium collected.