4 Trade Ideas for Intel: Bonus Idea

• Posted by Greg Harmon
• on December 23rd, 2019

Here is your Bonus Idea with links to the full Top Ten:

Intel, $INTC, gapped down in April, and found a bottom in May. It spent six months after that trying to break free from the 61.8% retracement of the move from the 2000 high to the 2009 low. With a series of higher lows it made for an ascending triangle and it broke back above in November. The gap up left an Island Reversal and the stock price stalled at the April high. After a shallow pullback it is back at resistance. A push over it and the stock can continue to the target of the triangle break to 63.

The RSI is bullish and rising with the MACD crossing up and positive. There is resistance at 59 and then back in 2000 at 61.40 and 64 before 67.50 and 71 then 73.50 and 75.80. Support lower comes at 57.50 and 56 then 54 and 53. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 2.14% and started trading ex-dividend November 6th. The company is expected to report earnings next on January 23rd.

The January options chain shows the biggest open interest at the 50 strike on the put side. On the call side it is biggest at 60 but very large at 57.50, 55 and 50 as well. The January 24 Expiry options, the first covering the earnings report, are still building volume. The February options show biggest open interest at 55 on the put side and 60 on the call side. The March options show open interest spread out from 55 lower to 45 while on the call side it is focused form 55 to 60.

Intel, Ticker: $INTC

Trade Idea 1: Buy the stock on a move over 59 with a stop at 57.

Trade Idea 2: Buy the stock on a move over 59 and add a January 24 Expiry 57.50/52.50 Put Spread (85 cents) while selling the February 62.50 Calls (85 cent credit).

Trade Idea 3: Buy the January/March 60 Call Calendar ($1.50).

Trade Idea 4: Buy the March 60/65 Call Spread ($1.70) and sell the March 52.50 Puts (75 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which heading into the shortened Christmas week, saw equity markets looking very strong, although the larger cap indexes were starting to get a bit extended.

Elsewhere look for Gold to consolidate under 1500 while Crude Oil digests in the uptrend. The US Dollar Index looks to continue to the upside in broad consolidation while US Treasuries continue their pullback. The Shanghai Composite looks to consolidate the recent move higher in a short term uptrend while Emerging Markets move higher around long term resistance.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY could us a reset on momentum measures as both are extended. If that happens it might be time for the IWM to take the lead. Use this information as you prepare for the coming week and trad’em well.

 

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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