Tony Zhang on Crude Oil Climb, 10-Year Yield & AMD, DVN Options Trades

In an interview on Schwab Network, Tony Zhang, Chief Strategist at OptionsPlay, outlined a cautious macro outlook for the broader equity market, driven by surging crude oil prices above $100 per barrel and the 10-year Treasury yield hovering near 4.9%. With market breadth deteriorating and momentum slowing across most sectors, Zhang warned of steep downside risks for the S&P 500, indicating a potential pullback toward technical support around 7,100. Despite macro headwinds, Zhang highlighted selective tactical opportunities in the energy and semiconductor sectors. In energy, supported by robust cash flows and elevated oil prices, he proposed a bullish options trade on Devon Energy (DVN.N) using a short put vertical spread (49/46) for October expiration to capture elevated implied volatility with defined risk. Within technology, Zhang noted that leadership is shifting from software back toward select semiconductor names exposed to artificial intelligence infrastructure. He singled out Advanced Micro Devices (AMD.OQ) following a technical breakout, setting a near-term upside target of $585 while recommending option structures to limit downside exposure.