DailyPlay – Opening Trade (INTC) – April 5, 2024

INTC Bearish Opening Trade Signal

Investment Rationale

INTC broke below support at $42 after it gapped lower on Tuesday. This has come after news from INTC about job cuts and a reorganization within the company.

As Price Action has confirmed our bearish thesis on this trade, we are therefore adding to our existing INTC position to extend our gains. We expect to see a continuation of this trend. The next area of support is at $37 where we will re-evaluate these positions.

INTC – Daily

Trade Details

Strategy Details

Strategy: Long Put Vertical Spread

Direction: Bearish Debit Spread

Details: Buy to Open 8 Contracts May 17th $42/$37 Put Vertical Spreads @ $2.49 Debit.

Total Risk: This trade has a max risk of $1,992 (8 Contracts x $249) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $249 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bearish trade on a stock that broke below support in a confirmed bearish trend.

1M/6M Trends: Bearish/Mildly Bearish

Relative Strength: 3/10

OptionsPlay Score: 103

Stop Loss: @ $1.25 Credit. (50% loss of premium paid)

View INTC Trade

Entering the Trade

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

Please note that these prices are based on Thursday’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. 

View INTC Trade