A Trader's Take On What To Do With AMD's Stock After Wednesday's Surge

Shares of Advanced Micro Devices, Inc. AMD gained more than 10 percent on Wednesday and are now higher by nearly 15 percent over the past five trading sessions alone. The question on many short-term investors' minds now is if the time is right to take some profits or if there is further upside ahead amid new product developments.

One of the more bullish signs for AMD's stock can be found in the options market, AlphaShark's Andrew Keene said during a recent CNBC "trading Nation" segment. Specifically, institutional order flow was observed in the September $15 calls which implies expectations for a move above the $15 mark. In addition, weekly $12.50 call options were also observed, Keene added.

Looking at the daily chart also paints a bullish picture in the near term, Keene continued. On more than one occasion in 2017, AMD's stock traded off the $10 level and moved higher, which leads him to believe that the stock can find "support" on the downside at $10. On the other hand, the stock tried to break above the $15 per share level was unable to do so.

But averaging the $10 support level and $15 resistance levels yields an average breakout level of $12.50 — a key level the stock broke through this week.

Bottom line, AMD's stock appears to have "more movement to the upside" and investors may consider buying any pullback moving forward.

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