Has Intel Hit Rock Bottom? Here's How to Profit 177% on $INTC!
Over the past few years, Intel’s valuation has been cut in half, with its stock plummeting 67.4% from its peak. So, has INTC finally reached its bottom?
🔥 The buzz around Qualcomm potentially acquiring Intel has caught the attention of investors, with some making bold moves and earning up to 177% in profits!
Curious about the strategy? Let’s find out!
👏👏👏 A huge shoutout to @JeniferT for an incredible 177.52% gain on INTC CALL options!
👏👏👏 And congrats to @Chris Luk for scoring a 112.55% profit on INTC CALL options!
Got some valuable trading tips? Don't keep them to yourself—share your insights in the comments below! 💡
Here’s how these two investors did it: They purchased INTC CALL options with a strike price of $34, set to expire on October 18th, at a cost of just $0.06 and $0.08, respectively.
On September 20th, rumors surfaced that $Qualcomm(QCOM)$ might be eyeing an Intel acquisition, causing the stock to rally from multi-year lows. If this struggling chipmaker is indeed on the radar of a cash-rich semiconductor giant, we could see $Intel(INTC)$ shares breaking out in a big way.
For those bullish on Intel in the short term, there are three key strategies to consider: Buy Call options, Buy the stock outright, or Sell Put options. Which one would you choose? 🤔
1. Buy Call Options
Outlook: Moderately bullish to very bullish.
Cost: Low, as you only pay the option premium, which is usually cheaper than buying the stock outright.
Leverage: High leverage, allowing a small investment to control a much larger position.
Profit Potential: You profit when the stock price rises above the strike price + premium paid. The higher it goes, the more you make—profits are theoretically unlimited.
Risk: The maximum loss is limited to the premium paid.
Example: Buy a call with a $100 strike price and a $5 premium. You’ll only profit if the stock rises above $105.
2. Buy the Stock
Outlook: Very bullish.
Cost: High, as you must pay the full price of the stock.
Leverage: None.
Profit Potential: Profits increase linearly as the stock price rises. You can also earn dividends for extra gains.
Risk: Full downside exposure, meaning if the stock drops, you can lose all the money invested.
Example: Buy stock at $100, and if it rises to $110, you’ve made $10. But if it falls to $90, you’ve lost $10.
3. Sell Put Options
Outlook: Moderately bullish.
Cost: You collect the premium for selling the option.
Leverage: Moderate, as selling puts only requires margin.
Profit Potential: If the stock stays above the strike price at expiration, you keep the premium as profit. The maximum gain is the premium received.
Risk: High. If the stock drops below the strike price, you may be forced to buy shares at that price, exposing you to losses.
Example: Sell a put with a $100 strike price and collect $5 in premium. If the stock stays above $100, you keep the $5. If it drops to $95, you’ll be forced to buy the stock at $100, meaning you’ve lost $5.
Potential Concerns Around the Acquisition:
While Qualcomm, known for its strong free cash flow and superior management, may be interested in acquiring Intel, this deal comes with significant risks:
Dilution of Qualcomm shares: If the acquisition involves stock, it would heavily dilute Qualcomm’s shareholders, lowering earnings per share (EPS), making it less attractive.
Regulatory hurdles: A deal of this magnitude could face intense scrutiny from the FTC, as such a massive consolidation in the semiconductor space might raise antitrust concerns.
So, which strategy would you choose for a bullish play on Intel? Let’s hear your thoughts! 🎯
🎁Rewards：
Feel free to share your $Intel(INTC)$ stock positions in the comment section to win Tiger Coins! Don't miss out on sharing your tactics; give us a lesson!
Large or high-win-rate positions also stand a chance to win stock vouchers and official interview invitations! Let's uncover who the guru is!
If you've achieved profits from other potential stocks we don’t know, kindly share your trading strategies in your post, and remember to include the topic "Winning Trades". Hope you'll be the next one to make it onto the leaderboard~
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Intel CEO Pat Genslinger was seen buying a ton of stock just before they landed a $3.5 billion pentagon contract. He is already up over 11% on his most recent purchase..
Some see risk, I see opportunity. Some see a falling knife, I see a fire sale.
INTC 21-29 free money?