TopOptionAlert
Oct 24, 12:03 PM
$AMAT NOV20 385C · still actionable
Zone:
$374.60 to
$379.88
Invalidation: close under
$372.80
Objectives:
$389.82, then
$399.03
The math: up 3.3% to the first objective and 5.8% to the second, against 1.2% risk on the invalidation, better than 4 to 1 to the second.
Dear friend, picture a good machine shop that got marked down hard on Thursday and then closed Friday in the green. That is the swing here. Applied Materials fell to 372 dollars and 80 cents on Friday and still finished at 377 dollars and 24 cents, which tells you buyers were willing to step in after the washout instead of waiting on the sidelines. Earnings land November 12 after the close, and this November 20 call runs right past that report, so you are positioned before the answer instead of chasing after it.
P.S. Watch 384 dollars and 33 cents, the Friday high, because a move over it shows buyers taking back ground.
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