ASML is a Dutch company that supplies semiconductor equipment and stands out for its advanced photolithography machines, which are vital for making microchips. They are the only manufacturer of extreme ultraviolet lithography systems, key for modern chip production. ASML’s stock is on the rise, hinting that it may exceed its all-time highs from 2024. Right now, it’s in the middle of wave three, with forecasts reaching up to 1200. There may be some pullbacks, creating good chances to buy in, with initial support anticipated around 934. The Basic Impulsive Bullish Pattern suggests ASML is currently in wave 5 of III in its upswing. According to Elliott Wave Theory, this five-wave structure is part of a larger upward trend. Waves 1, 3, and 5 rise, while waves 2 and 4 are corrections. Important rules state that: Wave 2 can’t dip below the start of Wave 1, Wave 3 isn’t the shortest, and Wave 4 must stay above Wave 1’s range. Typically, Wave 3 is the strongest due to increasing momentum. This content is based on information from FXStreet and is not investment advice. The opinions expressed are solely those of the authors. ASML seems to be on a powerful upward trend, backed by a strong Q3 2025 earnings report released last week. The company upped its full-year forecast due to overwhelming demand for its new High-NA EUV systems. This indicates that the current upward shift has solid fundamentals and is likely to exceed the highs seen in 2024. With this momentum, we see chances to buy call options that aim for the 1200 price target in the upcoming months. This quarter, global capital spending forecasts for the semiconductor industry in 2026 were increased by 15%, which directly benefits ASML’s order book. The extension of wave three looks highly likely as major chipmakers like TSMC and Samsung ramp up their shift to 2-nanometer production. Any pullbacks toward the 934 support level should be viewed as opportunities to enter or increase bullish positions. Selling cash-secured puts set to expire in early 2026 might be a good strategy to either buy shares at a lower price or collect premiums. This approach is especially beneficial, considering the sharp but brief downturns the stock faced during sector changes in late 2024. As the stock nears its previous all-time highs, we should anticipate an increase in implied volatility. This makes longer-dated call options, potentially for March 2026, appealing since they can better handle short-term fluctuations. Historically, implied volatility for ASML surged nearly 30% during the last breakout in 2024, rewarding those who got involved early. The current price movements support the idea that we’re in a strong third wave of a bigger bullish trend. This is further reinforced by the company’s record order backlog, which has exceeded €50 billion, marking a historic high. The easiest path seems to be upward, with corrections likely to be short-lived.

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