Best Stock on the Market

Put Options on AMAT on 7/20/2015

Bearish Flag on AMATApplied Materials, Inc. (AMAT) provides manufacturing equipment, services, and software to the semiconductor, flat panel display, solar photovoltaic (PV), and related industries worldwide.

The company’s Silicon Systems Group segment develops, manufactures, and sells a range of manufacturing equipment used to fabricate semiconductor chips or integrated circuits. This segment offers systems that perform primary processes used in chip fabrication, including atomic layer deposition, chemical vapor deposition, physical vapor deposition, etch, electrochemical deposition, rapid thermal processing, ion implantation, chemical mechanical planarization, epitaxy, wet cleaning, and wafer metrology and inspection, as well as systems that etch or inspect circuit patterns on masks used in the photolithography process.

Its Applied Global Services segment provides products and services designed to enhance the performance and productivity, and reduce the environmental impact of semiconductor, display, and solar customers' factories. The company’s Display segment offers products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes, and other display technologies for televisions, personal computers, tablets, smartphones, and other consumer-oriented devices. Its Energy and Environmental Solutions segment provides systems for wafer-based crystalline silicon cells and modules. This segment also offers roll-to-roll vacuum Web coating systems for deposition of various films on roll-to-roll plastic substrates for flexible touch panels, flexible displays, and other applications.

The company serves manufacturers of semiconductor wafers and chips, flat panel liquid crystal and other displays, solar PV cells and modules, and other electronic devices. 

Shares have formed a bearish "flag" and lower share prices are expected for this stock.

 

52-Weeks Trading Range: $17.64 - $25.71

Last Trade: $17.77

Trade

  • Buy 1 August $18.00 Put at $0.75
  • For a net debit of $0.75

Profit/Loss Analysis

  • Breakeven at $17.25
  • Maximum profit is unbounded
  • Maximum loss is ($75.00) at strike of $18.00

Closing Summary

  • Sold 1 August $18.00 Put at $1.55

Position closed on 8/14/2015 at price of $1.55 with a 106.67% gain in 25 days.

Updates

8/14/2015 9:53:37 AM

We are taking profits on AMAT August $18 Put options after the firm guided lower. Closed at $1.55.

Back to Portfolio