Getting Bullish Intel

I have no position yet but am looking to begin establishing one in $INTC over the next few weeks for a long term trade.

The disparity between market expectations and reality, Tuesday’s earning surprise, the bullish market response yesterday in a down market and recent long term positive technical developments are catalysts for my interest. The 3.6% dividend yield is a kicker.

I posted this chart over the weekend from @TSD_Trader. He writes “24 bucks breaks the neckline of a SEVEN YEAR (inverse) head and shoulders pattern.” That level has been tentatively taken yesterday.

TSD’s great look…

And last night, @chessnwine posted this monthly:

Fundamentally, there appears to me to be a significant difference between consensus street expectations which assume “the pc is dead” and the reality of Intel’s financial performance. Such rifts between ingrained perception and reality only work themselves into the market slowly over time.

As regular readers know, I usually sell near dated puts to establish positions but in this case I will likely buy the stock and sell calls in order to begin capturing the dividend yield.

I will have more to say on $INTC in the coming weeks here on the blog and will post trades in real time on StockTwits.