Applied Materials Traders Pile 100% Into Calls Ahead of Earnings

By Grace Kim

Every dollar of new options premium in Applied Materials on Nov. 11 — $2.3 million against just $4,650 in puts — went into calls, one day before the chip-equipment maker reports earnings. Traders are positioning for upside, and the stock is cooperating: AMAT traded near $397 at 10:55 AM ET, up about 6.5% on the session, according to options-flow data tracked by GTA Terminal.

The bet lands the day before a milestone. Applied Materials reports fiscal results on Thursday, Nov. 12, after the close, with the earnings call scheduled for 4:30 PM ET.

What does the technical picture show?

The bounce is real, but the bigger trend hasn't turned. AMAT sits back above its 20-day simple moving average at $387.25, yet it still trades under the 50-day ($440.34), the 200-day ($446.17) and the 100-day ($492.17). By GTA Terminal's read, that keeps the larger downtrend intact.

The rebound started from a deep hole. The Nov. 5 low of $316.95 marked the 60-day bottom, and the stock has bounced roughly 25% off it in just four sessions. Momentum confirms the move: the 14-day RSI sits near 47, recovering from approximately 30 at the Nov. 5 low — a swing from oversold territory to neutral.

The first big ceiling is close. The 50-day and 200-day SMAs sit together in the $440–$446 zone, forming the overhead test any recovery has to clear.

The takeaway: a violent four-day bounce has reclaimed short-term support, but three long-term moving averages still loom overhead.

Where exactly is the options money going?

The Nov. 11 intraday flow, per GTA Terminal, totaled $2.3 million in premium — all of it calls, with a put/call volume ratio of 0.55. Three trades stand out:

• Dec. 11 $350 calls: 325 contracts traded against just 12 in open interest, carrying $1.7 million in premium — fresh money, not closing positions.
• Nov. 13 $410 calls: 941 contracts versus 722 open interest, $643,000 in premium — a bet that extends past earnings.
• Nov. 13 $295 puts: 310 contracts versus 189 open interest, $4,650 in premium — the lone hedge on the tape.

The December $350 call block is the most telling. A strike that deep in the money, expiring a month out, signals conviction rather than a quick earnings flip.

What are dark pools doing?

Off-exchange trading share has held in a tight, elevated band through the week, per GTA Terminal:

• Nov. 4: 28.4%
• Nov. 5: 34.7%
• Nov. 6: 31.9%
• Nov. 9: 29.5%
• Nov. 10: 31.8%

Institutional desks have kept roughly a third of volume off-exchange through the selloff and the recovery — steady accumulation, not a one-day spike.

What levels decide the trade?

GTA Terminal lays out four prices that frame the setup:

• $440.34 — the 50-day SMA, first major resistance
• $387.25 — the 20-day SMA, near-term support
• $364.23 — the Nov. 10 low, secondary support
• $316.95 — the 60-day low, the invalidation line

The scenario GTA Terminal is watching: if AMAT holds above the 20-day into Thursday's report while call premium keeps building, that confirms the bounce. A close back below $387.25 — or under $364.23 after earnings — undercuts it. A break of $316.95 kills the setup entirely.

Thursday's report, in short, is the test: one side of $387.25 decides whether the 25% bounce has legs.