***Earnings, stock movements, & one month options****
With the AMAT release of earnings tomorrow, plus the Fed announcement of a rate reduction this week where ever AMAT's stock price is on Thursday will represent the new high for AMAT for the next 30 days.
I looked at a dozen tech stocks, from ASYT, AMKR, GLW, FLEX, CSCO, INTC, NVLS, and TER. As they reported earnings the stocks did move higher over the next two days in spite of a poor outlook, but the pop on the stock price went no farther than two days out. (after earnings). Then a modest retreat in the stock price took hold.
So what I'm suggestion is that if AMAT gets to 56 or 57 on the earnings and Fed announcement, at that time write either the June 55's or the June 60's for covered call premium.
The big negative for AMAT will be the BTB that comes out around the 20th of this month. Because it will be lower then last month, it may spook the very investors that it encouraged last month. The notion that things are getting poorer , but at a slower rate, has got to be false optimism of some sort.
If some option position looks interesting to you, lets hear about it. No need to justify it, as an option position represents an opinion of what might work for the next few months.
Regards, Jerome |
