TopOptionAlert
Oct 21, 9:57 AM
$AMAT NOV20 425C · actionable here
Zone:
$408.64 to
$414.40
Invalidation: close under
$399.03
Objectives:
$435, then
$460
The math: up 5.7% to the first objective and 11.8% to the second, against 3.0% risk on the invalidation, about 3.9 to 1 to the second
Dear friend, picture a good machine shop that does work for every chip maker in town and then gets marked down just because the whole street turned nervous that week. Applied Materials closed Tuesday at 404.98 dollars and dipped to 399.03 dollars before buyers stepped in, and this morning it was trading near 411.52 dollars before the open, which in plain words means that low held for now. This is a swing setup on a washed out name holding a real level, with earnings on November 12 as the next date that can move it, and a close under 399.03 dollars would say the hold failed and you step aside.
P.S. Watch 412.46 dollars first. That was the high on Tuesday, and a close above it would show buyers taking back ground, not just defending the low.
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