Applied Materials (AMAT) adds 23 cents to $12.63 in very active trading of 18 million shares and options volume on the semiconductor equipment maker is running 4X the daily average after UBS maintained the stock at Neutral and raised its PT to $12.50 from $11.50 per share. 46,000 calls and 10,000 puts traded in the name. January 12.5 calls are the most active and are probably seeing some liquidating activity, as the contract is in-the-money heading into expiraton and 11,458 contracts traded against 41,840 in open interest. Some positions might have been rolled to the Feb $13 calls, which have traded 10,935 contracts vs. 1,161 in OI. Apr $13, July 12, and Jul $13 calls are the next most actives in AMAT today and 30-day implied volatility is up 8 percent to 28. The company, which saw increased call activity yesterday, will report earnings in mid-Feb.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.