Why the INTEL Weekly
Options Trade was Originally Executed!
The semiconductor space has struggled over the past three months on bets
over persistently higher rates. Now, with signs of the Federal Reserve's
aggressive interest rate hiking campaign nearing an end, we are likely to see a
reversal of the decline in the sector. The expansion of artificial intelligence
(AI) applications holds the promise of ushering in fresh opportunities for
growth within the sector.
Additionally, a spate of strong earnings reports from well-known players like Intel Corporation (NASDAQ:INTC) has instilled confidence in the
Semiconductor giant Intel has enjoyed positive earnings estimate
revisions across the board. The CEO of Intel, Patrick Gelsinger, recently made
a big splash, acquiring roughly 6800 shares at a total transaction value of
The company has been consistently posting robust results, exceeding the
Consensus EPS Estimate by an average of 130% across its last four quarters.
Just in its latest print, the company posted a 95% EPS beat and posted revenue
5% ahead of the consensus expectation.
Intel’s top line appears to be finally stabilizing.
The INTC Weekly
Options Trade Explained.....
** OPTION TRADE: Buy INTC DEC 01 2023 38.000 CALLS - price at last close was $1.05 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the INTC Weekly Options (CALL) Trade on Thursday, November 09, 2023 for $0.99.
Sold half the INTC weekly options contracts on Friday, November 10, 2023 for $1.67; a potential profit of69%.
Don’t miss out on further trades – become a
Corporation is among the world’s leading manufacturers of microchips and
microchip-enabled products and services. The company engages in the design,
manufacture, and sale of computer products and technologies to original equipment
manufacturers, original design manufacturers, and cloud service providers. The
company was incorporated in 1968 and is headquartered in Santa Clara,
California, and is widely regarded as having put the “silicon” in “Silicon
originally a PC-centric semiconductor company but has branched out over its
more than 50-year history. The company is now engaged in global digital
transformation and is working to provide end-to-end solutions from the largest
digital clouds to the smallest IoT and Edge devices. Specifically, Intel is
working to advance AI, 5G connectivity, and the digitization of everything.
data-centric company operates through 7 segments and is one of the most
diversified publicly-traded chipmakers on the market. The company’s 7 segments
are CCG (client computing group), DCG (data center group), IOTG (internet of
things group), Mobileye (autonomous driving), NSG (non-volatile memory group),
PSG (programable solutions group), and All Other segments.
operates 6 wafer fabrication sites and 4 assembly test manufacturing sites to
ensure the highest standards of quality. The company’s products evolve on the
basis of Moore’s law becoming smaller, faster, and more powerful with each
platform products such as central processing units and chipsets, and
system-on-chip and multichip packages meant to power computers ranging from
tablets to supercomputers. Intel also offers non-platform or peripheral
products that include accelerators, circuit boards and systems, connectivity
products, graphics cards, and memory and storage products. The company’s
specialty divisions also provide high-performance computing solutions for
targeted verticals as well as embedded solutions for business, industry, and
central to the growth of data centers and the Cloud. The company once boasted a
near-100% market share of cloud-based microchip demand but that figure has
slipped over the years due to mounting competition. Intel’s cloud solutions
provide workload-optimized platforms and related products for cloud service
providers, enterprise and government, and communications service providers.
many technologies that Intel is working to advance are self-driving vehicles.
Solutions for assisted and autonomous driving include computing platforms,
computer vision, and machine learning-based sensing, mapping, and geolocation.
Intel Corporation also has a strategic partnership with MILA to develop and
apply advances in artificial intelligence methods for improving the search for
new drug therapies and applications.
Corporation is committed to corporate responsibility and environmentally
sustainable practices. The company seeks to leverage its position to advance
not only itself but the industry for the good of mankind.
Further Catalysts for the INTC Weekly Options Trade…..
Intel stock has fared well, rising by about 6% over the last five trading
days and by about 44% year-to-date amid signs that the big slump in PC sales
following Covid-19 lockdowns could be easing.
Intel, the world’s largest chipmaker, beat on both the top and the bottom
lines and provided upbeat fourth-quarter revenue guidance. This underscores
optimism over the company’s growth prospects.
It reported earnings per share of 41 cents, which beat the Consensus
Estimate of 21 cents and increased 11% from the year-ago quarter. Revenues
declined 8% year over year to $14.2 billion but came in above the estimated
The better-than-expected results were driven by a recovery in the
personal computers market. For the current quarter, Intel projects revenues in
the range of $14.6 billion to $15.6 billion, while earnings per share are
expected to be 44 cent
This indicates that CPU sales to the PC industry could see a rebound
after a tough couple of quarters, as manufacturers have worked through
inventory they previously built up, with data center inventory also
INTC disclosed that it bought more than a million Arm Holdings American
depositary receipts in that company’s September initial public offering.
Chip firm Intel disclosed in a Securities and Exchange Commission form
that it owned 1,176,470 Arm ADRs as of the end of September.
Arm ADRs were trading Wednesday at $54, about 6% above the IPO price.
seeing a cyclical turnaround in the PC market, there are some other positive
developments for Intel stock. While the big surge in interest in generative AI
was initially seen as a negative for Intel, given that cloud computing players
have focused on securing graphics processors for AI workloads, rather than on
central processing units that Intel sells, Intel indicates that it could also
see upside from this trend as its advanced packaging solutions have seen
considerable demand from most leading AI chip companies. Moreover, Intel is
looking to play a bigger role as a foundry, producing chips for other
semiconductor companies, and taking on the likes of TSMC and Samsung Electronics.
While investors were skeptical if this capital-intensive bet would pay off,
especially considering Intel’s recent struggles with updating its chips to the
latest process nodes, the company appears to be progressing. Intel signed up
three customers for its 18A process over Q3. The company’s foundry services
business generated $311 million in revenue, marking a 299% increase from the
same period last year.
According to the issued ratings of 30 analysts in the last
year, the consensus rating for Intel stock is Hold based on the current 4 sell
ratings, 21 hold ratings and 5 buy ratings for INTC. The average twelve-month
price prediction for Intel is $35.09 with a high price target of $56.00 and a
low price target of $17.00.
INTC stock traded down $0.77 during
trading hours on Wednesday, reaching $38.00. 13,817,905 shares of the stock
were exchanged, compared to its average volume of 41,856,922. The firm’s 50-day
moving average is $36.17 and its 200-day moving average is $33.80. Intel Co.
has a 12 month low of $24.73 and a 12 month high of $40.07. The company has a
market cap of $160.21 billion, a price-to-earnings ratio of -95.00, and a PEG
ratio of 14.14 and a beta of 0.88. The company has a debt-to-equity ratio of
0.44, a current ratio of 1.53 and a quick ratio of 1.13.