Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 15, 2014  Wed 12:20 PM CT

AMAT: SEE CHART GET CHAIN FIND STRATEGIES
The technology bulls can't get enough of Applied Materials.

optionMONSTER has been citing AMAT's breakout pattern on our Market Action webinar since Friday, and the option paper has been flowing this week. On Monday our Heat Seeker tracking system showed buying in the January 2015 20 calls for $0.81, followed by the March 17s yesterday for $1.04. Shares are up, sending those January contracts to $1.10 and the March 17s to $1.38.

And the activity continues today: More than 45,000 contracts have changed hands so far in the session, almost 8 times average amounts. Even more notably, calls outnumber puts by a highly bullish 19-to-1 ratio.

Call buyers are returning to the January 2015 20s, adding another 14,000 contracts to their positions. They're also moving up to the January 2015 22 calls, snapping up almost 10,000 contracts, mostly for $0.57. (See our Education section)

AMAT is up 1.28 percent to $17.85 in afternoon trading. The chip-equipment maker surged about 80 percent between late 2012 and October and has been pausing since. The stock appears to have broken out of a consolidation pattern recently, suggesting that it's ready to continue higher.

In addition to this activity, optionMONSTER.com cofounders Pete and Jon Najarian recommended a bullish trade in the stock in their weekly Advantage Point education newsletter this morning.

While the company hasn't yet announced the date for its next earnings release, last year's calendar suggests it will occur in mid-February. It could also be affected by Intel's release tomorrow afternoon.

Disclosure: I am long AMAT.
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