I had mentioned Tuesday that we were getting some very bullish signals from AMD, but it was still to early to begin purchasing the shares or buying call options.
Today, AMD got hit pretty hard closing down close to 8% on the day.
The action today was just enough to send the models into the all clear to purchase mode and thus AMD has become a buy.
However, based upon the clearly strong down trend the stock is in, I would advise your purchases of AMD be split into thirds until you have your full line in place.
In this particular situation, the options actually become the less risky investment of the two.
If you intended on purchasing say 1000 shares to accomplish your full position then you might entertain the purchase of 10 call options in place of the stock.