One way to profit from such a breakout is through a strategy called a long straddle. With a long straddle, the further out in time the trade is placed, the slower the time decay. Straddling AMD Stock With Earnings On The WayFor AMD stock, traders place a long straddle by buying a 160-strike call and put for the Dec. 19 expiration. The worst-case scenario with this AMD long straddle would be a stable stock price. For a long straddle, it's best to set a stop loss at around 20% of capital at risk.