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Top Trade Ideas For The Week Of Oct. 14: Bonus Idea

Published 10/14/2019, 07:19 AM
AMAT
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Here is your Bonus Idea with links to the full Top Ten:

Applied Materials (NASDAQ:AMAT), $AMAT, started moving higher off of a December low. After a couple of small pullbacks it made a top in July. It pulled back to a higher low in August and then reversed back to that prior high. Another small pullback has reversed back to resistance for the third time. The RSI is rising in the bullish zone with the MACD crossing up and positive.

There is resistance at 52.60 and then 56.65 and 59 before 62, all from early 2018. Support lower comes at 51 and 49.25 then 48. Short interest is low at 1.7%. The stock pays a dividend with an annual yield of 1.62% and starts trading ex-dividend November 20th. The company is expected to report earnings next on November 13th.

The October options chain builds open interest from 50 down to a peak at 47 on the put side. On the call side it is biggest at 55 and the 52.50. The November chain has biggest open interest at 50 on the put side and spread from 50 to 55 on the call side. January options have biggest open interest at 42 then 45 and 40. On the call side it is biggest at 45 and then 50.

Applied Materials (NASDAQ:AMAT), Ticker: $AMAT

Applied Materials Daily Chart

Trade Idea 1: Buy the stock on a move over 52.60 with a stop at 50.60.

Trade Idea 2: Buy the stock on a move over 52.60 and add a November 50/48 Put Spread (63 cents) and sell the November 57.50 Calls (43 cents).

Trade Idea 3: Buy the November 52.50/October 53 Call Diagonal ($1.50).

Trade Idea 4: Buy the November 48/52.50 bull Risk Reversal ($1.05).

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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