Options Idea: Buy The Jan. 21, 2022 INTC 40.0 Call @ $13.90Intel just gapped down after its last earnings release as margins tightened from almost 60% last year to 53.3%. Trouble lies ahead as well since Intel’s 7-nanometer manufacturing is delayed which will give AMD a 6 month head start to eat away at Intel’s market share. Intel has responded by initiating a huge $10 billion stock repurchase program. This is in addition to the Oct 2019 repurchase program already in place, bring total repurchases to around $20 billion.
Even though Intel is in trouble, we think there’s an opportunity for a longer-term play. Observe the historic Price/Sales ratio for Intel in the weekly view. We are buying today at 2.75. We’ve marked entries over the last few years at the 2.75 PS level. Every entry would have been successful over a 1 year holding period. The 50 week average on the PS ratio for Intel is 3.32.
Nevertheless, we like to reduce risk with options, so we are not going long in Intel. We are buying a deep in the money LEAP call on Intel today at $13.90, which gives us unlimited profit potential above $53.90 and limits our losses below $40.
Since this is such a long term LEAP call, we have 16 months (or 72 weeks) to sell monthly or weekly calls against this position. So while our current breakeven point is $53.90, we intend to lower our cost basis through the sale of out of the money shorter term calls.
This is strategy is called the poor man’s covered call. The important point is that with a $53.90 breakeven, the lowest priced call we can sell is $54. If we sell a lower priced call and INTC were to rise too quickly, the trade could lose money.
Selling next month or next week 15 delta out of the money calls should produce more than enough income to compensate us for the loss of dividends on this position and reduce our breakeven to $51, which is where Intel was trading today when we opened our long position.
Our objectives for short call income generation against this position are as follows:
Initial Objective: $2.90 (Extrinsic Option Premium), reduces breakeven point to $51
Secondary Objective: $4.55 (5 Quarters Dividends on 100 shares)
Stretch Objective: $13.90 (100% of capital recovered)
If we complete our initial objective we’ll have recovered our extrinsic option premium, giving us the benefit of going long in INTC at no additional cost. If we complete the secondary objective we’ll have not only recovered the option premium, but also generated 5 quarters of INTC’s $0.33 dividend, making our position equal to a long position in INTC, but at 20% of the capital outlay. And our final stretch objective is to recover $13.90 over the life of this call, recovering our capital early.
Standard Exit : We exit the trade for a profit when the PS ratio on INTC approaches 4.
Early Exit : We exit the trade for a profit as soon as INTC has recovered the 50-week moving average.
20-INTC-03
Opening Date: Sep 1, 2020
Expiration Date: January 21, 2022
DTE: 507
IV: 35.81%
IV Percentile: 69%
Odds of Winning: 32.60% (before selling short calls)
Odds of Losing: 67.40% (before selling short calls)
Win: > 53.90 @ Expiration (before selling short calls)
Loss: < 53.90 @ Expiration (before selling short calls)
Reg-T Margin: $0 (long position, uses $1390 cash)
Chart Legend
Green Area: 100% Win Zone. If we finish above or in the green area, we’ve made a profit on our call. This is a long call, so our potential gain is unlimited.
Red Area: If we finish in this area we have a loss. The size of the red area is the size of our maximum loss. Since we’ve bought a call instead of gone long, we have no additional losses below $40.
1 standard deviation, 2 standard deviation, 3 standard deviation projections from Opening Date to Expiration Date are included.
Follow us here on TradingView to get updates as we adjust this trade with the short calls we will be selling against this position.
Intclong
Blow up soon Still keeping eye on this stock. You can take a look at the chart, lower trendline indicates that buyers are more aggressive than sellers. In a perfect world, you want it to break and close above $50 prior to entry. A longer expiration is recommended if you decided to enter. Good luck :)
Good Time To Watch IntelIntel has a beautiful curve that has came up to the previous high on a monthly chart as is now playing a nice channel.
We are currently sitting on support for this channel and if broken support, then this is probably a double top and expect a correction.
Im only looking for a short channel support break. Otherwise I'll scrap and move along.
AMD, NVDA, INTC are all 3 at critical decision points
Intel Corp OversoldThere are a couple of signals that is pointing towards a potential rebound from Intel
severely oversold
hammer seen last Friday
hammer also corresponds to an immediate support line seen at approximately $48.
We have got to watch the support line of $48 very closely. But if all goes well, we should be seeing a short term rebound potentially to $56 which is prior support turned resistance.
INTC - INTEL main buying zonesHello traders,
Description of the analysis:
INTEL the best buying zones for investment.
About me:
Hi, my name is Jacob Kovarik and I´m trading on stock exchange since 2008. I started with a capital of 3000 USD. My first strategy was based on OTM options. (American stock index and their ETF ). I´ve learnt on my path that professional trading is based on two main fundaments which have to complement each other, to make a bussiness attitude profitable. I´ve tried a lot of techniques and many manners how to analyze the market. From basic technical analysis to fundamental analysis of single title. My analytics gradually changed into professional attitude. I work with logical advantages of stock exchange (return of value back to average, volume , expected volatility , advantage of high stop-loss, the breakdown of time in options, statistics and cosistent thorough control of risk). At the moment, my main target is ITM on SPM index. Biggest part of my current bussiness activity comes from e mini futures (NQ, ES). I´m trader of positions. I´m from Czech republic and I take care of a private fund (4 000 000 USD). During my career I´ve earned a lot of valuable experience, such as functionality of strategies and what is more important, control of emotions. Professional trading is, in my opinion, certain kind of mental training and if we are able to control our emotions, accomplishment will show up. I will share with you my analysis and trades on my profile. I wish to all of you successul trades.
Jacob
INTC, bullish and bearish scenario INTC is currently consolidating and is trading in a range on bigger time frames. We do not have clear direction of the trend, and i would not advise to take a trade until we cross the significant level.
LONG : i would enter long at 62 level with 1/3 of my position, because we have to be prepared of a fake breakout.
( 80% of all breakouts fail, they usually retest and move higher later). I would wait to retest and bounce back. I would than add at 63, 2/3 and wait what will happen at 64, because there could be a resistance. If we successfuly break it i would add 3/3 of my position and ride it to the upside until i see CLEAR reversal.
SHORT : i would short at 56. Volume does not to be big, because on the downside we do not necessarily need it big.
i would enter with 1/3 of my position - same reason : fake breakouts. And i would add at every whole number and look closely what will happen at half dollars ( at half dollars we usually create psychological support and resistance levels too ).
At 54 we could create strong support level. Watch closely for reversals ( candlesticks, volume )
If we cross it i would add to my position and ride it till i see a clear reversal signal.
Stop loss should be always 50 cents if you are risk tolerant, if not you can have a 20 cent stop loss.
INTC has a great fundamentals, wall street rates it as a very good tehnical and fundamental company and has a lot of potential in the future. So it is good for investment too.
I DO NOT recommend taking any of my trades because of the risk. I AM NOT a financial advisor and i AM NOT a institutional trader. This analysis is purely for entertainment only and it represents an idea what could happen with the stocks future.
If you like idea please like and follow.
Any kind of support is appreciated.
INTCThink we can push from this demand level and try to go and close the gap. Open tomorrow will be a big indicator for me as it looks like we are setting up the 1 - 2 wave movement out. These sell offs can produce good rallies by picking up buyers in good demand. However, this is the second time we have visited this level.
Game Plan: tomorrow open is important. If we bid up at open and make higher low, I will trade based on this count. IF we break by making a lower low, I’ll watch and see if we move down towards 55.93. So, higher low I think we push for gap fill. Below 55.93, I think 53.80 comes quickly!
As a side note, I do have a longer term count potentially down to 45, then eventually 38. So, where we are in this structure is important. If it wants to avoid those levels, some buyers better start stepping up otherwise it can fade.
INTCAgain, having a plan and sticking to it with patience helps with consistency. As I mentioned in previous post, I was staying out until either one of the zones were in play above or below. The below came today and I had mentioned a print below we will go visit $56.
We opened right at the 58.39 “uh oh” line I call it. Watched price action (had two 5 minute candles close below, then went to 15 minute to see candle structure overall). And then the game plan played out and price went straight on down to $56, printing a low of 55.93. This is why I wait for set ups; to put the odds more in your favor.
I’ll have to re-evaluate the chart tonight but in the meantime, as we sold right into a demand zone, I think we could see a potential relief bounce.
If anyone followed along, hope it worked out for you!
INTCIf this wants to go higher I think it needs to clear 60.81 which can be a big hurdle I believe. I think we will get a bounce out of this demand for a potential small day scalp but other than that I’m not making any large moves on this.
Below 58.39 I think we go and revisit the 56 area. Above 60.81 I think it can push to 62. Until then, I’m staying out. I’ll watch if price moves up to the 60.81 supply and if it rejects there, I’ll do a small short with a close stop on it. I think that area is important because if it rejects I see good downside; breaks through and it can push.
NOTE: if just starting to do options, I think stocks like this are great places to start and learn. Staying close to at the money strikes is easier and learning to capture movements are great compared to dealing with the higher end priced stocks like googl, amzn, nflx, etc. that can swing $50 daily. I always will keep trades on with underlying like this. I go for consistency whether that’s moves of $100 or $1; 5% gains (or whatever amount) are the bigger picture for me
INTCPre market consolidation in supply and failing to get above 62.85 = good recipe for rejection. As mentioned in my prior post for this one, suggested this could be a good entry for a short position!
With a rejection at that level, I think INTC just made it harder for itself to invalidate my bear count. Now we saw it rejected supply and faded right down to demand. If it holds here in this demand zone, think it will pop out and push to 61 - 61.65. Those will be big interest levels as if those get rejected, helps support wave count down, suggesting we would be putting in wave “b” up of the larger degree “(a)” wave down.
Alternative is for price to extend the retrace and try to form a micro 5 wave impulse up out of this demand level. But again, I think for that to happen we would see price up to 61 area followed by retrace back to demand (for waves 1-2).
So thinking either b up of “a” down OR will watch for wave 1-2 to form.
*** I did not enter a position today for this one. I was too caught up with some other projections I was watching but now wish I would have focused more here today. If someone did take this set up today, hope it worked well for you!
INTCTook an intraday short trade today when INTC entered (and overshot a bit) a first primary supply level I was targeting. Watched price action and was able to get a good fill on some puts for a nice gain today.
From here I think we continue down to demand level for "b" and then reverse upward towards "c." With the craziness of this market, will watch the up move within "c" as there is potential the "c" wave could become an impulse wave. I don't think this will be the case as I still think the market needs to revisit some downside.
Intel forms a cup do i hear a handle??Basic analysis of a promising cup and handle formation, firstly I believe tech stocks will hold this market up during this period of uncertainty, and Intel is a great example. With this bullish formation, after a small pullback to form the handle Intel is setup for a nice run. I might go long on this.
INTC IslandsIslands form when 'prices gap up to the formation and then gap down at the same price level' this is what traders would call an island top, where the initial breakout is upward, forming the island seen, and then a drop back down to the water follows so to speak. With a 23/23 success rate in a bull market according to 'Encyclopedia of chart patterns' islands are a reliable way of picking possible reversal points.
INTC Cup and handle?Looks like a cup to me, whether the handle forms or not is another question. Waiting for a lower entry is the best bet if following this chart. The bull trend will continue very strongly after this development. Intel is creating some very powerful processors and investing in AI development, these fundamentals are promising for the future of the company.