Q2 STOCKS TO BUY

AMD, Apple Set for Best Month in Years

New details about Apple's latest iPhones have emerged

Managing Editor
Aug 27, 2018 at 2:47 PM
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Stocks are soaring to kick off the new week, thanks to productive trade talks between the U.S. and Mexico. Looking at individual names, FAANG stock Apple Inc. (NASDAQ:AAPL), chip name Advanced Micro Devices, Inc. (NASDAQ:AMD), and digital solutions provider Limelight Networks, Inc. (NASDAQ:LLNW) are all higher. Here's a closer look at what's moving shares of AAPL, AMD, and LLNW.

Bloomberg iPhone Report Lifting AAPL Shares

Apple stock is up 0.9% to trade at $218.16, after a Bloomberg report detailed the release of three new iPhones next month, including a lower-end model and a variety of color options. Bigger screens will also be coming to iPads and Apple Watches, the report indicated.

On the charts, AAPL nabbed a fresh record high of $219.18 on Aug. 20. The shares gapped higher at the start of the month following an upbeat quarterly report -- sending AAPL above the $1 trillion market cap -- and have added 14.7% in August, set for their best month since February 2012. 

Those wanting to speculate on Apple stock may want to consider doing so with options. Its Schaeffer's Volatility Index (SVI) of 16% ranks in the 9th annual percentile, meaning short-term options are pricing in lower-than-usual volatility expectations at the moment, a boon to potential premium buyers.

New Graphics Card Has AMD Set for 7th Straight Win

Advanced Micro Devices stock is up 11% to trade at $26.62, near the top of the Nasdaq today, after the company launched its new graphics card for data centers. AMD is fresh off its best week since June 2017, and is currently on a seven-day winning streak. The shares are also set for their best month since November 2009, up 42% so far in August, and earlier notched a decade-plus high of $27.30.

Fresh off record-breaking options volume on Friday, AMD options are once again flying off the shelves A whopping 862,000 calls and 488,000 puts have changed hands -- four times the average intraday volume and pacing for another new high. In the lead today is the weekly 8/31 26-strike call, where new positions are being opened. In fact, the five most active options today are all weekly calls expiring this Friday, Aug. 31. 

Upgrade Vaulting LLNW to Top of Nasdaq

Limelight Networks stock is up 10.2% to trade at $4.82, also one of the best stocks on the Nasdaq today, after Craig-Hallum initiated coverage on the tech name with a "buy" rating and $6 price target. The analyst in coverage believes the company is perfectly positioned to capture surging Over-The-Top (OTT) video demand. The surge today has LLNW on pace to slice through its overhead 50-day moving average, a trendline that has acted as resistance for the past month. 

Several short sellers are likely kicking rocks, though. Short interest increased by 13.8% in the two most recent reporting periods, to 1.06 million shares, and has now nearly tripled in the past year. 

 

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