TopOptionsAIerts
Nov 6, 6:24 AM
$AMAT NOV20 310P · still actionable
Zone:
$317.01 to
$321.49
Invalidation: close over
$330
Objectives:
$300, then
$280
The math: down 6.0% to the first objective and 12.3% to the second, against 3.4% risk on the invalidation, better than 3 to 1 to the second.
I like this swing put because you are following the break, not guessing a bottom. AMAT lost 13.6% Thursday on 17 million shares, the whole chip equipment group went with it, and the stock just printed a 50 day low. The zone is tight and
$330 is the line where you are wrong, so the risk is set before the move continues. Earnings land November 12, so you know the date that can change the move.
Watch: November 12, earnings after the close.
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