Trade Alert: Chips

Betting on a technically strong chip stock ahead of earnings.

Note: normally, I send these trade alerts out during market hours, but this one filled just before the close. You should be able to get a fill on it at a similar price though, as earnings aren’t expected before the end of the month.

A Chip Stock With A Strong Chart

A few of the technical traders I follow on X have highlighted this chip stock. Chartmill agrees with their bullishness, giving the stock a technical rating of 10 out of 10. This one is expected to release earnings at the end of the month, though it hasn’t officially announced it yet. Zacks ESP expects a slight earnings beat, and Estimize predicts a somewhat larger beat on both top and bottom lines.

The options market expects a movement of about $22 in either direction for this stock, but we’re betting on an upward move of about $13 post-earnings. If we’re right, our max gain will be about 200%, and if we’re wrong, our max loss could be as much as 100%.

Details below.

Today’s Bullish Chip Stock Trade