Options Move Ahead of Applied Materials' Earnings

Traders are buying puts in Applied Materials on Monday, as investors position for a pullback before the chip equipment company reports its quarterly earnings tomorrow.

Volume in the June 10 puts surged past 10,000 against open interest of 1,362 contracts, according to OptionMonster's monitoring systems. Most of the transactions were executed at or near the asking price, which reflects strong buying interest.

AMAT stock is flat on the session at $11.89 in Nasdaq trading, as of this writing. The company will release fiscal second-quarter earnings after the market closes tomorrow. The last time Applied Materials reported quarterly results in February, management said weak demand would cause full-year sales to decline.

Overall put volume in AMAT today exceeded calls by more than 2 to 1, reflecting a generally bearish tone.

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David Russell is a reporter and writer for OptionMonster.