The technology bulls can't get enough of Applied Materials.
optionMONSTER has been citing AMAT's breakout pattern on our
webinar since Friday, and the option paper has been flowing this
our Heat Seeker tracking system showed buying in the January 2015
20 calls for $0.81, followed by the March 17s
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.
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
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
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
I am long AMAT.
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