Options Corner: INTC

Core Insights - Intel has experienced significant volatility in its stock price, with a notable increase of approximately 60% recently, outperforming the semiconductor ETF, tech sector, and broader market [1][2][3] Technical Analysis - The long-term chart indicates a potential breakout from a prolonged downtrend, with significant historical events like the dot-com bubble and COVID-19 being highlighted [2] - A recent breakout above the 26.50 level led to a substantial upward movement, followed by a period of low volatility and subsequent price increases [3][4] - Current price movements are contained within a defined white channel, suggesting a structured trading range [3] - The Relative Strength Index (RSI) shows bullish patterns, although a slight bearish divergence is noted as the RSI is overbought despite recent price increases [5] Expected Price Movements - The expected price movement for Intel by October 17th is approximately ±12.9%, with key support levels identified around 32 and 29 [6][7] - The upper resistance level is projected at about 37.71, indicating potential price targets for traders [7] Options Strategy - A bullish call vertical strategy is proposed, involving buying a 35 strike call and selling a 45 strike call, which allows for limited risk exposure while maintaining upside potential [10][11][12] - The cost of this strategy is approximately $2.70 per spread, requiring the stock to exceed 37.70 for profitability, representing a 5% increase from the current price [13][14] - This approach provides flexibility, allowing for exit prior to expiration if the desired price movement occurs [15]