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Straddles and strangles are more advanced strategies that involve buying both a call and a put option with the same expiration date. A straddle involves buying a call and a put with the same strike price, while a strangle involves buying a call and a put with different strike prices. These strategies are used when you expect a significant price movement in AMD but are unsure of the direction.
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* **Relative Strength Index (RSI):** This is a momentum oscillator that measures the speed and change of price movements. The RSI fluctuates between 0 and 100. Readings above 70 are often considered overbought (suggesting a potential pullback), while readings below 30 are considered oversold (suggesting a potential bounce). Always combine the RSI with other indicators for confirmation.
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