Applied Materials (AMAT) Offering Possible 29.72% Return Over the Next 28 Calendar Days

Applied Materials's most recent trend suggests a bullish bias. One trading opportunity on Applied Materials is a Bull Put Spread using a strike $52.50 short put and a strike $47.00 long put offers a potential 29.72% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $52.50 by expiration. The full premium credit of $1.26 would be kept by the premium seller. The risk of $4.24 would be incurred if the stock dropped below the $47.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Applied Materials is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Applied Materials is bullish.

The RSI indicator is at 70.63 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Applied Materials

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Wed, 16 May 2018 23:13:00 +0000
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Wed, 16 May 2018 22:39:00 +0000
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Twitter, Farmer Bros, Texas Instruments, Applied Materials and Mellanox Technologies highlighted as Zacks Bull and Bear of the Day
Wed, 16 May 2018 14:03:02 +0000
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What AMAT’s Balance Sheet Says about Its Financial Health
Wed, 16 May 2018 13:01:21 +0000
On AMAT’s fiscal 1Q18 earnings call, its chief financial officer, Daniel Durn, stated that the company’s first priority for capital allocation is to invest in businesses and technologies that deliver higher returns. Such a rating is achieved when a company has sufficient assets to meet its short- and long-term debt obligations. At the end of January, AMAT had a current ratio of ~3x, which means its current assets of $13 billion are three times its current liabilities of $4.4 billion.

A Look at AMAT’s Applied Global Services Division
Wed, 16 May 2018 11:31:45 +0000
AMAT’s AGS (Applied Global Services) division helps semiconductor and display manufacturers ramp up their production of new equipment, improve equipment yield and performance, and optimize output and operating costs. AGS also provides upgrades, spares, remanufactured earlier-generation equipment, and factory automation software. Because AGS is a service, its revenue is recurring and rises with increases in new deployments.

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