DailyPlay – Closing Trade (AMAT) – August 29, 2024

Closing Trade

• AMAT – 41.25% gain: Buy to Close 2 Contract (or 100% of your Contracts) Oct 4th $200/$220 Call Vertical Spreads @ $5.17 Debit. DailyPlay Portfolio:  By Closing both Contracts, we will pay $1,034. We initially opened this Contract on August 23 @ $8.80 Credit. Our gain, therefore, is $726.

Investment Rationale

After NVDA reported stronger than expected revenue and EPS numbers, the stock dropped about 7% after hours, but as of this morning has already pared some of those losses. Overall, the earnings report shows that demand for AI related hardware remains robust and expects that to continue into the 2nd half of this year. We are going to take this opportunity to close out our AMAT position that is currently up roughly 40% as equity markets respond positively to the report.