Applied Materials (AMAT) delivered a Q4 earnings beat and offered up a solid near-term demand outlook. Revenue rose 10% year over year to $6.75 billion. And its product backlog surged 62% to a record $19 billion thanks to a 90% increase in semi systems offerings.
Now that earnings are out of the way, I am recommending we sell a put to reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $105.30
Net Debit: $9.68
Action: Sell to open the AMAT Dec Week One (12/2) 100 Put for around $1.60, but adjust as needed to sell a put today
New Net Debit: $8.08