Categories: Momentum Trader Alert HotlinesStock Market News

Making Another Semiconductor Momentum Play and Three Option Recommendations

The semiconductor industry has been one of the strongest-performing sectors in the U.S. stock market in recent months.

This has come even as headline-grabbing stocks like Apple, Amazon.com and Facebook have cooled off. The outstanding performance of the sector is reflected in this week’s Momentum Trader Alert recommendation.

Founded in 1980 and headquartered in Fremont, California, Lam Research Corporation (LRCX) designs, manufactures, markets and services semiconductor processing equipment used in the fabrication of integrated circuits. Lam is also a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry.

Lam Research Corporation (LRCX) vs. the S&P 500 year to date.

Momentum Trader Analysis

Recommendation

Buy Lam Research Corporation (LRCX) at market today and place your stop at $180.00.

With the stock currently overbought, I am holding off on recommending options this week.

If you want to take on some additional risk with your current positions, I recommend:

1. Buy the Altbaba (AABA) January 2018 $67.50 calls (AABA180119C00067500), which last traded at $4.58 and expire on Jan. 19.

2) Buy the Amphenol (APH) January 2018 $85 calls (APH180119C00085000), which last traded at $3.32 and expire on Jan. 19.

3) Buy the CBOE Holdings (CBOE) January 2018 $105 calls (CBOE180119C00105000), which last traded at $6.60 and expire on Jan. 19.

Portfolio Update

You stopped out of Intuitive Surgical (ISRG) on Oct. 19 at $351 for a 20.07% gain.

You currently have four other double-digit-percentage gainers in your Momentum Trader Alert portfolio. All but one position is currently profitable.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.