Q2 STOCKS TO BUY

Why Intel Stock is Weighing on the Dow

Options players are flocking toward the equity

Deputy Editor
Jan 22, 2021 at 11:18 AM
facebook X logo linkedin


The shares of Intel Corporation (NASDAQ:INTC) are near the bottom of the Dow today, last seen down 8.4% at $57.42. This comes even after the semiconductor powerhouse reported fourth quarter earnings and revenue that bested Wall Street's forecasts, fueled by a strong demand for personal computers and laptops during the pandemic-laden year. It seems like the reason for today's plunge can be chalked up to a combination of profit-taking and an early-morning cyber hack to the company's corporate webpage.

Nevertheless, no fewer than 14 brokerage firms have issued bull notes, the loftiest of coming from J.P. Morgan Securities to $80. Coming into today, 17 of 28 firms sported "hold" or worse recommendations, which means Intel stock was well overdue for a round of upgrades. Today's slew of price-target hikes may not be the last, too, as INTC's average 12-month price target stands less than 2.9% above current levels.

The first month of 2021 has already been an eventful one for INTC. A bull gap launched the equity to as high as $63.95 by Jan. 21, essentially filling the sharp 16.2% post-earnings bear gap from July. Even amid today's breather, the shares are up 15% already in 2021. 

Options traders are ramping up their presence today. Already, over 124,000 calls and 84,000 puts have been exchanged so far -- total volume that's triple what's normally seen at this point. Most popular is the weekly 1/22 59-strike call, with new positions being opened there, followed by the 59-strike put from the same series. 

Now looks like a good time to weigh in on Intel stock with options amid a post-earnings volatility crush. The equity's Schaeffer's Volatility Index (SVI) of 39% sits in the low 19th percentile of its annual range. In other words, INTC currently sports attractively priced premiums.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter