7Aug
on this weeks Options Action show Tony had a trade for Intel INTC , here is the video clip:
Mike adds some comments, mentions a vertical spread instead. no specifics though. Carters rationale is pretty much only that its so bad its good. Tony has a trade structure i use alot , that being a diagonal spread. Hes buying the Jan2023 35 call and selling a near dated call against , that being the Sep09 38 call, and intends to repeat selling calls.
my main beef is the stock. i dont see anything on the chart that screams reversal higher. the fundamentals vs AMD are terrible and a lesson i learned early on was that the 52week low list is not the place you look for investments. although tony talks about longer term exposure, thats fine but just seems like a rough place to commit buying power. Also having to go out 33 days in the future to get .40 cents of premium is a little light to me.
Really cant think of an alternative to this trade.. maybe.. and i mean maybe to wait for the stock to actually make a noticeable bottom and move higher.. its trading even lower now than the post earnings selloff.. let the stock make that bottom and begin an uptrend first, sacrifice that first dollar or two before entering. Or call it 38 or higher as it starts to move into the gap to fill. If you are really interested in long term try the JUN 2023 call instead for about $1.20 more for 6 more months
But my recommendation with my money would be NO TRADE HERE , use the buying power elsewhere. "So Bad its Good" might be a valid strategy if the fundamentals where not so bad. a stock is usually down for a reason
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