$AMAT · Verified Investing · 2026-11-04

All right, what am I looking at today? It is AAT applied materials. So, I want you to guys take a look at this white trend line first, this downs sloping one from this wide range red bar candle from July 29th, 2026.

So, price came down to here and offered a clean bounce um off support. And again, when you got another sharp fall like this, you thought you would get another bounce. Well, actually, we broke below that.

We tried to reclaim and we did, but that was not the bounce we are looking for. We got a little bounce just under this pivot, but not a higher high and we were rejected. Now we're continuing lower.

We sold off yesterday below the trend line and then confirmed today. We're now breaking below and even has a harsh wick into this trend line showing sellers are rejecting price here.

So, is now the time to jump on and go long? I would say let's wait.

So right now price is at 36674. The first support level I'm looking at is this gap fill. This large gap fill right here at 35327. This could be the first major resistance area should or support area should a continue to go down.

That was where I would look for support. So, I'm looking at that 353 level. And then, guys, let's do another trend line together. This is a long-term one. This is from July 11th, 2024.

Okay, from this pivot top here, as we see, cutting through price action right here, rejecting price and then price pushes down and then gaps up above it. Now, it's acting as support.

And since then price bounced on this level twice and confirmed now to the upside. Now we have not been back to this trend line since late March. Okay, since late March we've been we haven't touched this trend line.

So now this trend line has had plenty of time to fortify and should give a bounce in this zone. So, this one now tests at about 350 to about 340. 340 to about 350. Still about $20 away.

But today with that lower low and that harsh rejection, this is one that I'm going to be patient on. I want price to continue falling. I don't want to jump in here and pay up on the premium.

I want price to continue falling. And two guys, RSI is still the relative strength index, the momentum index is coming in at 3349. So this also tells me that price could continue to code down before this gets into oversold territory.

That makes me not want to jump the gun right away. However, this is the setup I am looking at and will translate to the chain to see if the environment is fit for a long or if we're talking about the options world, this would be a call.

All right, folks. Um, so I was looking at AAT for a potential call. Um, wait, what? Looking for a call on AAT. It's at about 370 right now. Went up a bit. Sorry folks, I was uh frozen for a second.

Okay, I'm in here now on AAT and we were looking at a call, okay, because we are bullish. Um, but we wanted to wait.

first off, let's kind of read the let's read the environment. So, kind of put call interest today coming in at 1.4 and put call volume coming in at 1.02. So, interest is kind of neutral.

Put call volume, however, today is confirming more bearish. Okay. And we did see that on the charts. Okay. Okay. But now is the time to jump in now. Well, IV rank says that premiums are at the 29 percentile.

So, if we're looking at the the past 52 weeks, we should be in. But IV rank lies. IV percentile is saying we're at 78 percentile. So, these premiums are still going to be expensive.

Okay. This is more of one that I want to kind of more likely wait especially for price action to hit our zone. I was saying RSI still had time to move down and we still wanted AAT to get into our support zone of the trend line and that gap fill.

Now let's just check out the chart now Tabby just because we're learning about we're just really hammering theta today. Yes. Let's look at this is the two-day option for AAT. Okay.

Now, what is that theta I'm seeing of where it's at right now? I mean, all of them are aboutgative -2. Yes. Negative -2. Yeah. Like right at the money. Okay. Now, let's check out 16 days.

Let's maybe go two weeks out. How's that theta now? Now it's like.7. That just cut in half. Crazy. If not more, just by giving yourself two weeks for your trade to play out. Now, you kind of have some breathing room.

Now, let's check out one more. Let's check out the 44 day. Let's say maybe we'll wait till Christmas. Cut in half again. Now only bleeding 36 to 37 cents a day. Okay. So, just a quick demo for you guys so you can really see how Theta accelerates as we get closer to expiration.

All right. Now, we were still about $20 away. So, I'm looking at least 30 days out on a call for um AAT. And we're looking at the 355 area. Okay. A little bit of interest. Yeah, a tiny bit.

Yeah, really tiny bit for sure. And still there's a there's a 100 right here at the 380. Okay. Just one volume. Let's see. All right. There's a lot of people like this time frame.

Seems Yeah. A lot more people here in the 45day. What a jump. Yeah. For real. From one Yeah. from 30-day to 37 day. There's like one to 10. There's 100. And now we get plenty of it.

So, as you see guys, I'm not lying when I'm saying traders like to have theta on their side. This is why some a lot of these traders are waiting for, you know, more time for their thesis to play out.

So, going on with this though, I just don't like the setup here. Um, I really want to we we're gonna pay up because our target here is at, you know, the 340 to 350 strike board.

Our delta is so high here when our delta is super high there, Tabby. Why is what are we going to pay with that? We're paying for certainty pretty much. You know, we're paying more for that certainty for the higher delta.

That's why we like to have more in the middle range. Yeah. That 4.5. So yeah, based on this one guys, I'm going to wait for the IV to continue to cool off. I want for price action on AAT to continue to slide towards our support level.

And as we see guys, we can pass once, wait a little week, and be patient for our trade play for our trade to play out. We saw in Loheed, we originally passed. We waited a couple weeks and the trade that we would have take yesterday paid off.

So this is another one where we're going to pass and wait for the best environment.