KLA Tencor (KLAC) Offering Possible 7.53% Return Over the Next 24 Calendar Days

KLA Tencor's most recent trend suggests a bullish bias. One trading opportunity on KLA Tencor is a Bull Put Spread using a strike $72.50 short put and a strike $67.50 long put offers a potential 7.53% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $72.50 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock dropped below the $67.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for KLA Tencor 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 KLA Tencor is bullish.

The RSI indicator is at 55.87 level which suggests that the stock is neither overbought nor oversold at this time.

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LATEST NEWS for KLA Tencor

KLA-Tencor: Susquehanna Ups to Hold; Special Confirms Industry Maturity
Mon, 27 Oct 2014 18:07:00 GMT
Barrons.com – Sharse of chip equipment maker KLA-Tencor (KLAC) are down $1.05, or 1.4%, at $74.85, despite a somewhat upbeat note this morning from Susquehanna’s Mehdi Hosseini following KLA’s announcement last week of a leveraged recapitalization that will pay out $16.50 per share in special one-time cash dividend. Hosseini raised his rating on the shares to Neutral from “Negative,” writing that “After contemplating over the weekend about KLAC's leveraged recapitalization announced last Thur, we believe the prudent action is to upgrade the stock.” To Hosseini, the announcement is a “vindication” that the equipment industry has matured: Overall WFE spending in CY14 is on track to increase 10-12% to ~$33B vs. KLAC's rev growth of 2-3% Looking forward, we expect normalized WFE spending of $32B +/- 5%. KLAC's announced recap (borrowing 3x est CY14 EBITDA) to pay a special dividend while also increasing its buy-back program is consistent with such view as it simply means industry has matured.

Stock Futures Point Lower; Brazil Vote Hammers Petrobras
Mon, 27 Oct 2014 13:05:00 GMT

[$$] Overheard: KLA’s Big Bet
Sat, 25 Oct 2014 03:57:36 GMT

KLA-Tencor Throws Down Its Chips
Fri, 24 Oct 2014 18:11:38 GMT
The Wall Street Journal – KLA-Tencor dramatically ramped up its cash return to shareholders – and may have upped the ante against rivals in the process.

KLA-Tencor Tops in Q1, Announces Leveraged Recapitalization
Fri, 24 Oct 2014 16:20:06 GMT

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