Applied Materials (AMAT) is selling off sharply today. To avoid being assigned shares, I am recommending we book a loss on the position now rather than carrying it into the new year.
I will send a longer alert this week sharing my thoughts on trading the semiconductor sector in 2023, but for now, let’s close out a position that has been struggling for months rather than continue to tie up capital.
Current Stock Price: $98.57
Net Debit: $5.55
Action: Buy to close the AMAT Dec Week Four (12/23) 105 Put for around $6.95, but adjust as needed to close today
Loss: $12.50, or $1,250 per contract