Intel (INTC): Put Options Ahead of Earnings?

Intel (INTC): Put Options Ahead of Earnings?

Traders, next week brings what I hope will be a pretty big move lower in Intel (INTC).

INTC reports earnings on Tuesday the 13th.

While earnings may measure up to the ‘beat the number’ nonsense that Wall Street plays, I suspect their 4th quarter guidance is what will trip them up.

Thus, the recent rally from $24 to $32 has me contemplating adding to our existing bearish options positions but I have not decided just yet.

However, as noted below, even if prices just moved a bit lower into the earnings and then gapped down to $28 (Sep 24th low) the result would be a 3.5x winner.

This hypothetical image was captured yesterday when the puts were trading .92 – today they are only at .83 despite 2 solid days higher in INTC stock.

Certainly something to consider.

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