BY Andrew Giovinazzi
October 8, 2025
It is hard to short stocks in this market. There are unicorns flying everywhere but the gap (when a stock opens well above its last closing price) and flop (when a stock steadily moves down to its pre-gap price) trade has been solid this year.
One that did just that is Advanced Micro Devices (AMD).
It is a great company. But it gapped big when its new partnership with OpenAI hit the news.
And I think AMD is no exception to the laws of gravity.
3 month AMD chart with 90 day implied volatility (blue & red)
Implied Volatility is running hot as the more than $30 gap blew up market makers and anyone short calls. When a big cap name like AMD goes parabolic, there is usually a mess involved afterward and option premiums stay very high.
Everyone has to pay to play now.
The pattern of the sharp OpenAI related moves and the gap fill is still in play here. You should look for a move back down to around $170 a share.
But only over the short-term.
I am sequencing with Crisper (CRSP)
In the State of the Market on Wednesday, I covered biotech in making a comeback after years of torpor post-COVID.
Many Biotech companies are back to where they started the year and some are making 52-week highs. CRSP is one of those companies as gene sequencing gets a kick from the AI potential.
Also note below the giant bid (circled) for implied volatility in the 90 day cycle.
CRSP 90 Day IV in green on the 1 year chart
Another kick is from the massive amount of call buying out in January 2026 from early Aug to this week. This stock looks like it wants to make a run to $100 with all of the institutional buying. Take a look at the two snaps below from Aug 04 into the run currently to the mid 70s.
CRSP Jan2026 options
CRSP Jan2026 options
The volatility and fingerprint jumps are signs traders are jumping into CRSP more into the end of the year. I expect more news around the CRSP tech before the end of 2025.
These volumes are what drive stocks higher. I expect to see more of this as money looks for bargains in an expensive market.
AG
Want To Watch Us Live?
Add Our Free Events To Your Calendar By Clicking Your Email Icon Below!
