JP Morgan Suggests Buying 1x2 Put Spreads on Applied Materials
September 02, 2011 9:28 AM
JP Morgan is out with a research note this morning, where it suggests that traders buy 1x2 put spreads on Applied Materials (NASDAQ: AMAT) because of downside risks.
JP Morgan's Alternative Energy Equity Analyst, Christopher Blansett, published a fundamental report on Applied Materials on 29 August 2011 that states:
“We remain Neutral AMAT, but think that there is more risk to the downside vs. upside at this time. AMAT shares have declined more than 25% since May. We think there is another 10% downside risk before the stock likely bottoms. We would recommend investors accumulate shares at or near $10 and accumulate aggressively should AMAT fall below $10 on overall market volatility.”
T play this view point, JPM options analysts suggest buying one January 2012 $11 put and selling two January 2012 $10 puts for a net credit of $0.19.
Applied Materials, Inc. provides manufacturing equipment, services and software to the global semiconductor, flat panel display, solar photovoltaic and related industries.
