4 Trade Ideas for Intel: Bonus Idea

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

Intel, $INTC, rose off of a bottom in March and then fell into consolidation in in April. It moved mainly sideways, under the February highs for 3 months. Then it gapped down following its July earnings report. It found a bottom a few days later and has been in consolidation in a tight range since. It ended last week pushing over short term resistance. The Bollinger Bands® had squeezed in and prior to the break out. The RSI is rising near the mid line while the MACD is crossed up and driving higher.

There is resistance at 52, right near the 61.8% retracement of the drop from the dotcom high to the Great Financial Crisis low, then 55.75 and 57.50 before a gap to fill to 60 then 62 and 64.50. Support lower comes at 47.65 and 44.65. Short interest is low at 1%. The stock pays a dividend with a 2.62% annual yield and began trading ex-dividend on August 6th. The company is expected to report earnings next on October 22nd.

The September options chain shows the biggest open interest at the 47.50 puts and calls. It is large at the 50 and 55 calls as well and the 50 puts. The October chain has open interest focused from 50 to 52.50 on both the put and call side, with size at the 60 call as well. In the November chain, the first covering the next earnings report, the open interest is building below 50 on the put side and at 50 on the call side.

Intel, Ticker: $INTC

Trade Idea 1: Buy the stock on a move over 51 with a stop at 48.50.

Trade Idea 2: Buy the stock on a move over 51 and add a September 50/47.50 Put Spread (83 cents) while selling the October 55 Calls (77 cents).

Trade Idea 3: Buy the October 52.50/September 55 Call Diagonal ($1.20) and sell the October 45 Put (51 cents).

Trade Idea 4: Buy the November 45/52.50/57.50 Call Spread Risk Reversal (18 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 with one trading day left in August, saw equity markets had put up stellar returns on the month despite the hot lazy summer weather.

Elsewhere look for Gold to consolidate in its uptrend while Crude Oil continues to slowly drift higher. The US Dollar Index continues to move to the downside while US Treasuries may be breaking consolidation to the downside. The Shanghai Composite looks to move higher in consolidation while Emerging Markets move up out of consolidation.

The Volatility Index looks to continue to run flat in the February gap making the path easier for equity markets to the upside. Their charts 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. The IWM may be ready to break its bull flag to the upside. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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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