Intel’s stock dropped over 10% to $47.29, causing concern among retail traders. This decline was anticipated by chart analysts due to Intel hitting a resistance level, with the earnings report serving as a catalyst for the pullback.<\/p>\n
Technical traders are preparing to place buy orders at strategic points. Two potential buy targets have been identified: $44.00 and $42.00. The $44.00 level is a pivot point that could act as a floor, while $42.00 is critical due to its alignment with a trendline from August’s lows.<\/p>\n
These points offer favourable conditions for day and swing trades. Traders must watch the $44.00 level for immediate opportunities but consider $42.00 for long-term positions. The $42.00 level is expected to attract significant market action. It is seen as a strong point for institutional entry, presenting optimal risk-reward scenarios for traders. The overall strategy focuses on buying during the current downturn, taking advantage of market fear and resetting conditions.<\/p>\n
We remember the big flush in Intel after its earnings report this time last year, in January 2025. The stock gapped down over 10% below $50, causing widespread panic among many retail traders. That drop toward the $42 support level, however, proved to be the exact buying opportunity we were waiting for, setting up a profitable multi-week swing trade.<\/p>\n
Today, the situation feels familiar as we approach another earnings report next week, with the stock trading near $58. Implied volatility is extremely high, with an IV Rank of 85, as the options market is pricing in a potential 9% move in either direction. This elevated premium is precisely what derivative traders look for when selling options.<\/p>\n
Instead of buying the stock, we should be looking at the options market to sell put credit spreads below the current price. A solid strategy would be to sell the February $45 strike puts while buying the $42.50 strike puts for protection. This position allows us to collect a premium while defining our risk, profiting if Intel stays above those key support levels that held up so well last year.<\/p>\n
For traders with a more bullish view, the best move is to wait for the post-earnings volatility crush. After the announcement, options will become significantly cheaper regardless of the direction the stock moves. If Intel does dip into the low $50s on the news, we can then purchase calls with a few months of duration at a much better price.<\/p>\n","protected":false},"excerpt":{"rendered":"
Intel stock drops; traders eye $44 and $42 levels as key buy zones amid technical correction concerns.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40018","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t