Recommended Applied Materials Options Trade.....
Materials OPTIONS TRADE: Buy AMAT
JUL 16 2021 135.000 CALLS at approximately $5.80. (Actually bought for $4.35)
Materials Options Trade Call Success Explained.....
On Friday, May 21, 2021, “Up-and-Coming Traders” Members entered the trade
mentioned above for $4.35.
On June 01 this options
trade price hit a high of $10.95 - potential profit of 152%.
Also, this options trade
price reached a high of $9.75 last Friday, June 04, 2021, providing members
with a potential profit of 124% if they missed selling beforehand.
Why the Jump for the Applied
Materials Options Trade
Applied Materials was provided a huge
opportunity last year as global demand for semiconductor chips shot up to
support the shift to remote work and online education. Semiconductor sales
jumped 6.5% worldwide to $439 billion in 2020, over-straining a supply chain
that was already impaired by the COVID-19 crisis.
In helping to meet this surging demand,
Applied Materials benefited and finished its fiscal 2020 with an 18% increase
in revenue and a 37% increase in adjusted earnings per share. Fiscal 2021 so
far is turning out to be an even better year as semiconductor companies
continue to spend billions of dollars to ramp up production capacity.
Applied Materials surge is far from over despite a slight pullback that
has occurred this week. The company
anticipates non-GAAP earnings of $1.76 per share this quarter on revenue of
$5.92 billion, which is much higher than Wall Street's expectations of $1.56
per share in earnings on $5.53 billion revenue.
demand is expected to rise by a double-digit percentage this year, estimated to
be an 11% increase in chip demand in 2021 following last year's 7% increase.
This supply shortage will persist into the second half of the year; which means
that chipmakers are expected to keep adding more capacity.
As well, faced
with limited manufacturing options, many microchip designers are paying top
dollar for the materials and processes they can get their hands on today.
"We're still in the early innings of major secular trends that will
play out over the next decade and drive the semiconductor and semi-equipment
markets structurally higher," CEO Gary
Dickerson said on the earnings call. "For
the first time, customers are providing capital spending guidance for multiple
years into the future, which is a new leading indicator for demand
Applied Materials' stock returns are
supported by fantastic business results. The stock doesn't look expensive after
that massive 52-week rush, trading at a modest 19 times forward earnings and
seven times trailing sales. This company enjoys both an artificial short-term
boost from the semiconductor shortage situation and a healthy long-term growth