Buy Alert: July 29, 2014

Marcus Haber | July 29, 2014

Buy Alert: July 29, 2014

Trade Details

Buy GT Advanced Technologies (GTAT) September 20^th 14 Calls for $1.50 or better

Why?

GTAT is producing the sapphire screens which will be offered on some or all of the new iPhone 6 models coming out this Fall. The stock has been getting killed lately because of expected delays in the production of some sapphire screens.

However, the selling has been overdone. Not only will the new screens be a major source of revenue for GTAT at one point or another, but the company also has a completely separate and successful solar business.

I don’t believe GTAT will breach the 200-day moving average, as it should provide strong support. Moreover, the stock is set to make a run back to the 50-day moving average above $16.

Let’s grab the September 14 calls here.