TopOptionAlert
Oct 22, 7:57 PM
$AMAT NOV20 360P · still actionable
Zone:
$373.39 to
$378.65
Invalidation: close over
$389.82
Objectives:
$353.50, then
$331
The math: down 6.0% to the first objective and 12.0% to the second, against 3.7% risk on the invalidation, better than 3 to 1 to the second
Dear friend, picture a floor that held for three days while everyone tested their weight on it, and then this morning it gave way. That is this swing breakdown in Applied Materials. The stock closed at 408.94 dollars on Wednesday, held above 399 dollars, and today fell about 8 percent to near 376 dollars, which means buyers who defended that ground now sit above price as possible sellers on any bounce. A close back over 389.82 dollars would say I read the break wrong, while a bounce that cannot reclaim it keeps the path toward those lower objectives open.
P.S. Earnings land November 12, before this contract expires November 20, so the report sits inside this trade and can move the stock hard either way.
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