Is Intel Finished?

Yo Pit Crazies,

 

Bill Griffo is our Head Income Trader here at Option Pit, but I prefer to call him Macro Griff and his missives in Power Income are a must read for me. He’s got some big things heading your way, so keep your eyes peeled …

 

The Invesco QQQ Trust Series 1 (Ticker: QQQ) closed at an all-time high yesterday, though it dipped a bit after hours.

 

Apple (Ticker: APPL) and Amazon (Ticker: AMZN) are both struggling, thanks in large part to supply chain issues.

 

I also see that Intel Corp. (Ticker: INTC) is not looking too hot.

 

The question is — is INTC a trade or an investment?

 

Let’s take a look!

 

An Interesting Conversation

 

I was talking with one of my Capitol Gains member yesterday member yesterday and he said this:

 

 

Interested in Capitol Gains? Give our Customer Service Team a call at 1-888-872-3301.

 

That note brought this response from me and is the best investing advice I ever got from someone much smarter than me.

 

“If you want to make money trading, you have to close. If you want to make money investing, never close.”

 

That is where I find myself with INTC.

 

I want to add to the stock I have but I think it makes an interesting trade in the meantime.

 

INTC is near the Covid lows and that does not seem right.

 

It does appear to be a bit of a Value Trap, but near 3% dividend down here is not too bad.

 

 

I added ratio put spreads yesterday, buying Nov. 05 49s and selling the Nov. 05 48s for small credits.

 

I don’t think INTC rallies anytime soon but there will be some good credits to be had.

 

The Rundown

 

Pro Trading Room:
The Pro Room is Option Pit’s live access to Mark and myself during trading hours. Our Pro students post trade ideas with Mark and me during the entire trading session. 

 

The Pro Room did not like the price action versus SPY/VIX today. 

 

 

 

Big Money Flow

Each week, Option Pit CEO Mark Sebastian looks at size institutional option buying with a twist.  He mostly buys calls or puts to ride the large momentum trades.

 

      • Mark closed some Ford Motor Co (Ticker: F) calls for a 70% gain today. Rock’em, sock’em!

 

Robinhood Trader:
Option Pit CEO Mark Sebastian uses the Robinhood Gamma Radar to find order flow in active MEME  names.

      • I filled in for Mark in RHT and bought HOOD Nov. 17 36/41 call spreads for $.62.

 

Trading Legion:
The Trading Legion is an intermediate-level education and a long strangle/calendar trading vehicle. The goal is to teach students the best times to buy options.

 

      • I closed my third TL win in a row with a SPY calendar for a 6% gain.

 

Volatility Edge & Volatility Trading Club:

Volatility Edge is run by Mark and uses the proprietary Option Pit VIX Light indicator to guide volatility trading. The Vol Trade Club is run by me (AG), and employs a long strangle strategy that seeks to use VIX future decay to pay for upside VIX, VXX and UVXY options.

The Option Pit VIX Light Is Red, and I expect a lower VIX tomorrow after the tepid response to AAPL earnings.

 

Remember, a lot of vol strategies I use are market neutral. That means whether SPX or VIX go up or down, the positions still make money. This is a technique you can learn in the Volatility Trading Club and Volatility Edge!

 

To Your Trading Success,

AG

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