Apple Supplier Bounces Off Annual Lows

Applied Materials options are quite pricey right now

Managing Editor
Mar 19, 2020 at 2:15 PM
facebook X logo linkedin


It's been quite a day for Apple (AAPL) supplier Applied Materials, Inc. (NASDAQ:AMAT). The stock opened lower out of the gate, only quickly pare those losses and pivot higher. At last check, AMAT was up 2.7% to trade at $39.96, but still faces a steep uphill climb out of its 2020 losses.

More specifically, Applied Materials stock is down 34% year-to-date, and last week breached its 320-day moving average for the first time since June. Since a Feb. 13 record high of $69.44, the shares have shed 42%, culminating in an annual low of $36.64 yesterday. 

AMAT Stock Chart

Analysts remain firmly entrenched in the bullish camp. There are 17 brokerages covering AMAT, and 14 rate it a "buy" or better, with only one "sell" on the books. Plus, the security's consensus 12-month price target of $73.05 is a 82.5% premium to its current perch. 

Options traders have a strong penchant for calls. AMAT's put/call open interest ratio (SOIR) sits at 0.98, and ranks in the 1st percentile of its annual range. In other words, short-term options players have rarely been more call-heavy in the last 12 months.

However, it should be warned that those looking to speculate on AMAT with options will need to pay up for premiums at the moment. The 30-day at-the-money (ATM) implied volatility (IV) right now is 111% and ranks in the 99th annual percentile, hinting at higher-than-normal volatility expectations around the stock at the moment.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI