Intel Corporation (INTC), Trending Stock Report

Intel Corporation (INTC) is certainly trending in the news and social media. They are getting hit by a wave of bad news. Their last earnings report was bad. Then in their attempt to recover, it looks like INTC is having an identity crisis. Should INTC become a chip “designer” like AMD, or a “foundry” where it makes chips for others, like TSMC? Or should the company remain unchanged, where it designs and makes its own chips? In their quest to remain relevant, INTC’s management appears to be trying to do all of the above, which creates the perception that they are “A jack of all trades, master of none.”

This makes the company vulnerable to significant moves due to all of the potential catalysts. They are dealing with innovation from competitors. They have the potential for indexes to drop the stock from their portfolios. The INTC board now plans to have a meeting to discuss shedding assets to cut costs. There is a lot of potential for great news or shockingly bad news.

If you look at the borrow rate in the time series chart below, we are seeing the first signs that short sellers are showing interest in INTC. It’s not a massive short position but it looks like some investors are positioning for a drop in INTC.

This Volatility Skew chart for INTC is the exact opposite of what we normally see on indexes. That is, the higher strike prices are more expensive than the lower strike prices. This abnormal skew can be played a few different ways. Be sure to read the ODDS Online Daily Trade Idea to get the details of a few strategies for this volatility skew.

INTC is trending in the news and social media. There are many potential catalysts for a big move in INTC share prices. An abnormal volatility skew opens up the playbook on option strategies. Depending on your expectations, there are a couple of ways to play this.

To get the specific details and prices on today’s trade ideas, be sure to read today’s ODDS Online Daily Option Trade Idea.