Buy Call INTC

April 29, 2024
Stock on Watch – Intel (INTC)

Last year we bought Intel (INTC) calls early in the stock’s meteoric rise following several days of bullish option activity. This turned out to be a great trade as we rode our calls to a big profit.

And while our buy of the calls was great, fortunately, so was our sale as we exited our position fairly close to the stock’s top. And since our exit, INTC stock has been a bit of a disaster as it has fallen from a high of 51 in late 2023, to a low of 31.5 today, following earnings late last week.

As long-time Cabot Options Traders know I like to buy strong stocks, and I really like to buy stocks that have reacted well to earnings … essentially the opposite of the set-up in INTC. That being said, I am intrigued by the stock as call buying is very strong in INTC today, including these buys:

Buyer of 15,200 Intel (INTC) December 40 Calls (exp. 2026) for $5.70 – Stock at 31.5 (rolled from December 55 calls)

Buyer of 4,500 Intel (INTC) November 35 Calls for $2.35 – Stock at 31.35.

I am not going to get involved with INTC today as the stock looks horrible. That being said, should this call buying activity continue for a couple more days, I could potentially break my “rules” and buy a longer-term position looking for a turnaround.

January 17, 2024
Sell Existing Position: Sell your INTC January 34 Calls for $11.70 or more.

INTC has tripped our mental stop and it’s time to sell our position for a profit of approximately 210%.

To execute this trade you need to:
Sell to Close your INTC January 34 Call

Please note, I am interested in adding a new semiconductor play to the portfolio … though given the market’s weakness this morning I may wait a bit to see if the indexes can stabilize before buying.

October 26, 2023
Sell a Third of your Intel (INTC) January 34 Calls for $1.75 or more.

Intel (INTC) will report earnings today after the close. And while I think the stock looks “ok,” mega-cap technology has been destroyed the last two days, which is not the best set-up for an earnings release and stock reaction.

Let’s play it safe, take a loss on the second third of our position, hope this sale is a giant mistake, and then see how the stock reacts to earnings with the balance of our trade.

To execute this trade you need to:

Sell to Close a Third of your INTC January 34 Calls

Here is the expected earnings move via the options market:

INTC - With the stock trading at 32.5, the options market is pricing in a move of $2 this week, or 30.5 to the downside and 34.5 to the upside.

Open interest is skewed bullish on a ratio of 1.3:1 call vs. put.

Skew is pricing in typical downside risk and upside interest.

July 28, 2023
Sell a Third of Existing Position: Sell a Third of your INTC January 34 Calls for $4.50 or more.

Intel (INTC) reported earnings yesterday afternoon that beat expectations. In reaction to those numbers INTC stock is trading higher by 4%.

Let’s stick to the plan, lock in a profit of approximately 20%, and then go for greater gains in the weeks and months to come.

To execute this trade you need to:
Sell to Close a Third of the INTC January 34 Calls

June 28, 2023
Buy the Intel (INTC) January 34 Calls (exp. 1/19/2024) for $4.25 or less.

As I’ve written up recently, Intel (INTC) has attracted very bullish option activity, and the stock was showing signs of life. However, in the last week the stock has come under some selling pressure and is lower again this morning on potential semiconductor/China-related news.

And while the stock is down 1.25% today, call buying continues in the stock, including these trades this morning:

Buyer of 30,000 Intel (INTC) October 38/44 Bull Call Spread for $0.87 – Stock at 33.7
Buyer of 10,000 Intel (INTC) July 34 Calls for $0.81 – Stock at 33.

While my bias is to turn a blind eye to INTC because it’s been a dog for so many years, the option activity and stock improvement, as well as the cheap price of options, makes a January call buy a risk I’m willing to take.

To execute this trade you need to:
Buy to Open the INTC January 34 Call

The most you can lose on this trade is the premium paid, or $425 per call purchased.

The risks I see in this trade are the following:

• General market and sector risk (as always)
• INTC earnings announcement expected in late July
• “Peer” Micron (MU) will report earnings today after the close, which could move the semiconductor sector and INTC

That being said, to pay $4.25 for a January call, in a potential turnaround stock story, is a risk I’m willing to take.