Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 15, 2014  Wed 5:16 AM CT

AMAT: SEE CHART GET CHAIN FIND STRATEGIES
Semiconductors names were strong yesterday, and the bulls turned to chip-equipment maker Applied Materials.

optionMONSTER's Heat Seeker system detected the purchase of some 27,000 March 17 calls, including one large block priced for $1.04 and another big chunk for $1.08 an hour later. The volume was far above the strike's open interest of 4,354 contracts before the trades appeared, clearly indicating that this is fresh buying.
 
These long calls lock in the price where the stock can be purchased through mid-March no matter how far it might climb. But the contracts, which will closely track the share price because they are already in the money, will quickly lose value if the stock does not climb in coming weeks. (See our Education section)

AMAT rose 1.79 percent to $17.63 yesterday after double upgrades of chip giant Intel triggered buying across the semiconductor space. It had a big run between late 2012 and October 2013, followed by consolidation since.

Total option volume was 10 times greater than average in the session, with calls outnumbering puts by a bullish 15-to-1 ratio.

(A version of this post appeared on InsideOptions Pro yesterday.)
Share this article with your friends


Related Stories

AMAT

Notable option trades in equities

November 21, 2014

Nearing the halfway mark in today's session, here are the individual equity names with unusual option activity on optionMONSTER's ActionTracker data system.

AMAT

Bull sticking with Applied Materials

November 21, 2014

A big call trade is looking at further gains in the chip-equipment maker, which has moved up from support in the last six weeks and is back at a long-term resistance level.

AMAT

Long-term bet on Applied Materials

November 10, 2014

Shares have come back strongly since plunging in mid-October but have stalled in recent days ahead of the chip-equipment maker's earnings report this week.

AMAT

Applied Materials seen holding firm

October 27, 2014

Traders are betting that the chip-equipment maker will hold firm this week, following bullish option activity last week.

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinar Series

Using Options for Income

Education & Strategy

Importance of learning the basics

Personally, I could never understand how so many option instructors start teaching strategies before explaining what an option is. I...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER