So, Intel Corp (INTC) went on sell-off and is trading in the 24.67$ area,
the speed of the decline offers oppurtunities for low risk counter-trend strategies.
the strategy is a suggestion for the people who want to enter long on intel but dont want to risk a lot of money if the stock continue to drop.
i would list the following as my favorite to enter bullish on Intel (INTC), with low risk high profit ratio.
LONG PUT 25 FEB (INQNE.X)
SHORT PUT 35 FEB (INQNG.X)
the strategy is a credit bull spread
max risk is ~ 100$
max profit is ~ 900$
risk:profit 1:9 which is a great ratio.
the spread is low risk as PUT 25 Feb will hedge the fall if the stock continues to drop down.
the time decay is low as we shorted a low put, we are shorting volatility so we prefer a slow fix up.
for full technical analysis of intel corp click here
thats all for today
Shadi.
