INTC Analysis

Intel Corp. (INTC)

Update 5/1/2017: intc gapped to the downside after earnings were published and on the second day of trading, as the options approached expiration, reached a point where I could exit at less than my target price, at 17.9% of maximum potential profit. (My target is 25%.)

Shares declined by 2.3% over four days, or a -213% annual rate. The options positon produced a 21.7% yield on debit for a +1,980% annual rate.


 

INTC publishes earnings on Thursday after the closing bell.

I shall use the series of weekly options that trade for the last time eight days hence, on May 5.

Implied volatility stands at 21%, which is double the VIX, a measure of the volatility of the S&P 500 index.

INTC’s IV stands in the 58th percentile of its annual range and the 92nd percentile of its most recent broad movement.

The price used for analysis was $37.11.

Premium: $1.29 Expire OTM  
INTC-iron fly Strike Odds Delta
Calls
Long 39.00 88.1% 12
Break-even 38.29
Short 37.00 49.4 53
Puts
Short 37.00 50.1% 47
Break-even 35.79
Long 34.50 88.8% 9

The premium is 57% of the width of the position’s wings.

The risk/reward ratio is 0.9:1.

Decision for My Account

I have opened a position on INTC as described above. The stock at the time of entry was priced at $37.10.

By Tim Bovee, Portland, Oregon, April 27, 2017

2 thoughts on “INTC Analysis

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