Advanced Micro Devices, Inc. (NASDAQ: AMD) reports fourth-quarter earnings after the market close Tuesday, and the stock is experiencing some unusual option trading activity ahead of its report.

CNBC’s Dan Nathan pointed out that AMD had 2.5 times as much call option buying activity as it typically does, and the stock finished the day at its highest close since Oct. 24; AMD last reported earnings that day after the market close. After reporting disappointing numbers, AMD stock tanked from above $14 to around $10.75 within a matter of days. It took the stock three months to get back above the $13 level.

This time around, the options market is pricing in another big 10 percent earnings move, and it seems call buyers are expecting that move to be higher. According to the Benzinga Pro data included below, some of the largest buys were for April 20 $15 calls, April 20 $13 calls and February 16 $11 calls.

There was also high volume in both February 2 $13.50 calls and puts, a popular option trading strategy called a “straddle.”

Options traders are typically seen as more sophisticated and advanced than the average stock trader. That generalization is particularly considered to be true when it comes to options traders who place extremely large orders. In other words, when somebody makes a huge bet in the options market that a stock is going to go up or down, stock traders take it seriously.

Of course, stock traders also use options bets as a way to hedge against their primary stock positions heading into a potential volatile catalyst such as an earnings report.

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