This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Bulls Pile Into Applied Materials

By David Russell of OptionMonster
 
NEW YORK -- Applied Materials (AMAT) reports earnings next month, and traders can't wait to get long.
 
OptionMonster's tracking systems detected the purchase of more than 4,000 June 21 calls for 35 cents on Thursday. Some 15,000 January 25 calls followed minutes later for 36 cents and 38 cents. Volume was more than four times open interest at both strikes, which indicates that new money was put to work on the long side.
 
Calls lock in the price where a stock can be bought, letting investors cheaply position for a rally. These options can also generate significant leverage if the stock moves in the right direction, but they will expire worthless if shares stall or pull back.
 
Applied Materials' shares rose 0.62% to $19.37 Thursday. The maker of semiconductor equipment surged to a five-year high above $21 early this month, then fell along with the broader technology sector and has been attempting to rebound above its October peaks since. Earnings come out after the market closes on May 15.
 
Total option volume was more than three times average amounts, with calls outnumbering puts by 25 to 1.
 
Russell has no positions in AMAT.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.75 -1.13%
FB $80.78 -1.86%
GOOG $524.05 -1.83%
TSLA $206.79 0.04%
YHOO $44.45 -2.91%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports