Shares of AMD have been unstoppable this year, and options traders are betting the run is just getting started.

The chipmaker was trading lower on Tuesday afternoon after jumping more than 23 percent in just the past week and now up nearly 33 percent in the past month. According to "Options Action" trader Mike Khouw some traders are betting AMD's miraculous run still has steam.

On Monday, AMD saw five times its daily options volume, and over 1 million call options traded. Within the activity, Khouw highlighted a block of traders targeting the weekly Aug. 31 26-strike calls for an average price of $0.80 cents per contract. These bets imply shares of the chipmaker will rise to $26.80, or up nearly 10 percent from its current levels by this Friday.

Despite the surge in bullish sentiment in the stock, Khouw warns that AMD's swift rally could pose a risky investment for traders looking to get in at these levels.

"I think committing money to the stock would be pretty reckless at this point given its wild hockey-stick-like move," he said Monday on CNBC's "Fast Money." According to FactSet analysts, AMD currently has an average overweight rating and an average price target of $17.67, which is nearly 30 percent below its current levels.

Shares of AMD are up 141 percent this year and were trading lower on Tuesday afternoon, around $25.15.