Q2 STOCKS TO BUY

INTC Shares Hit By Bear Note During Test of Key Trendlines

Intel was downgraded last month, too

Jun 27, 2019 at 10:36 AM
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It's been a rough few months for Dow component Intel Corporation (NASDAQ:INTC), suffering two bear gaps since the April peak of $59.59. INTC stock was last seen trading slightly lower at $48.12, after Wedbush weighed in with an "underperform" rating and $37.50 price target, obviously expecting further downside ahead for the equity. The majority of covering analysts already have "hold" or worse recommendations for the shares. 

Looking closer at Intel stock, it's currently trading just below the 50-day and 200-day moving averages. The latter trendline acted as a ceiling from last September through January. Also in this region is the site of the equity's last bear gap in May, and of course the round $50 level should not be ignored as potential resistance, either. 

In the options pits, there's been a notable push for long puts lately. This is according to the 10-day put/call volume ratio at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) of 0.93, which ranks in the 98th annual percentile. So while call buying has had the edge, the demand for long puts has been stronger than normal.

Taking a broader view, peak front-month open interest is at the July 52.50 call, and this option is actually seeing heavy attention this morning, too. Most popular so far today, however, is the weekly 7/5 47.50-stike put.

 

 
 

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