DailyPlay – Opening Trade (INTC) – August 8, 2022

Bullish Opening Trade Signal

View INTC Trade

Strategy Details

Strategy: Long Call Diagonal Spread

Direction: Bullish

Details: Buy to Open 3 Contracts (Buy Jan 20, 2023 $35) / (Sell Sept 9, 2022 $38) Call Diagonals @ $3.10 Debit.

Total Risk: This trade has a max risk of $1,866 (3 Contracts x $622 per contract).

Counter Trend Signal: This is a Bullish trade on a stock that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 2/10

OptionsPlay Score: 112

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Please note these prices are based on the previous day’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. This will be reflected in the Portfolio tab within the OptionsPlay platform. Finally, the Risk for this trade is not Unlimited, but $622 per contract.

Investment Rationale

With INTC currently trading at a long-term support level of $35, we expect some market memory to come into play here. This is the price level from where INTC broke higher in 2017, and has now retraced towards. With regards to the sentiment on this stock, 26% of analysts have a BUY rating, they don’t expect EPS and revenue growth until 2024 and they have reached peak bearish sentiment. Therefore, the sentiment on the street is seen as overly bearish which leads us to take a contrarian stand on this stock. We will therefore be taking some Long exposure.

INTC – Daily