Jerry,
Agreed. This looks like a "typical" correction. If it continues "typically" then we'll move up a while, and then turn downward again and retest the lows that we just made. So the winning combo may be calls for now, and then puts in a few weeks again, and if the re- test holds, then back to calls.
AMOF, I tend to camp on AMAT's options just before their earnings announcement. The spread widens nicely. (AMAT should announce around May 14th or so- watch the SI Calendar).
Geek that I am, I have been confusing KLAC with KLIC. In fact I do not know what KLIC even is- I'll check it out. As previously noted, costs are fixed in the equipment industry. So when revenues jump, costs do not move proportionately. Hence, profit margins widen. Long term it's suicide to bet against the chip industry. But short term, after that initial "bounce" off of the bottom, I may try to short AMAT, NVLS, or KLAC, and try to catch them sliding back a bit off of those initial bottom bounces...
That is coming. Indeed check the SI calendar- the next two weeks are options heaven. There are dozens of chip and equipment maker, and networker earnings announcements. There should be world-class volatility- let the rumble begin!
Sincerely,
Doug F. |
