What’s Up With Intel?

Andrew Giovinazzi

Yo Pit Crazies,

The market conditions right now are waiting for the next Fed Rate decision, coming at 2 p.m. ET today. Traders already bid up options in SPX and they got another ¾ of a percent rally today. I’m thinking 4400 or higher SPX easily this week.

Right now Nvidia Corp (Ticker: NVDA) has the expectations for 50% revenue growth to take over the giddy feelings in tech.

Are any other stocks capable of making 20% moves? Well, that’s a good question – I think there‘s a case for Intel Corp (Ticker: INTC):

3 month stock chart with realized and implied vol in INTC

Why do I think that?

Realized Vol Is Off the Hook in INTC

Realized/historical volatility is the close-to-close measure of how much a financial instrument moved. INTC went into the basement when NVDA announced it was taking over tech with their super fast GPUs.

The blue line for realized vol in the chart above is going nuts – closer to year highs than year lows. That’s much different than the rest of the market.

Why are they coming after INTC shares? Well, INTC owns part of Mobileye Inc (Ticker: MBLY), which will rely on AI to some degree. INTC does have a shot at growing as a domestic foundry for NVDA. Lots that could happen riding the AI coattails.

I added INTC to the Easy Button because the IV/HV separation made for a great trade entry. I think I’ll be reporting a great result in a week.