Semiconductor supplier Applied Materials Inc (NASDAQ:AMAT) was last seen down 0.9% at $559.76, headed for its fifth loss in six sessions. This pullback could be short-lived, however, as the software powerhouse is now flashing a historically bullish signal.
AMAT sports a 10-day put/call volume ratio of 1.40 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 87% of readings from the past year.
There has been seven instances in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, AMAT was higher one month later 86% of the time after these signals with an average 4.9% return. From its current perch, this would put the stock back near $587.
Lastly, Applied Materials stock's Schaeffer's Volatility Scorecard (SVS) ranks at 91 out of 100. This means the security outperformed volatility expectations in the past year.
