Intel Stock continues to churn but not down now sideways. With all the technical indicators pointing to a possible rebound or certainly a slowing of the selling, I stepped out once again into Intel Stock and did put selling at the $22 strike for October. The selling today managed to push the stock to 23.06 but did not break the $23.00 valuation. When doing my stock technical analysis today I could see the signs that the selling is abating in Intel Stock.
Intel Stock Put Selling Reasons
The stock technical analysis for Intel Stock has all the right signs. However for investors who have absolutely no interest of owning any Intel Stock shares you will want to still wait. Below is the Intel Stock chart for the past few days.
First sign of a bottoming process starting is the stock that was on the lower Bollinger band is now moving away from the lower Bollinger band. This is often accompanied by a few days of back and forth action as the stock tries to consolidate. You can see at the end of August how Intel Stock fell along the lower Bollinger band and then moved away from the lower Bollinger as it tried to bottom. It probably would have bottomed here if the news from Intel had been better. However releasing pre-earnings warning will certainly hurt any stock which is what happened to Intel Stock.
Bollinger Band Strategy For Intel Stock Naked Puts
If Intel stock does move sideways I will be watching to see if it can climb back to the Middle or Upper Bollinger Bands. With some of my naked puts set to expire next week, I may get to close the $23 for pennies. Meanwhile the Oct $22 puts will definitely fall in value if Intel Stock moves even slightly and can hold for a few weeks.
Other Stock Technical Analysis Readings
Meanwhile the Ultimate Oscillator, Fast Stochastic and Slow Stochastic are all sitting at extremely oversold levels. This is excellent as even if there is more selling, it will be muted in comparison to the last few days. This should assist in getting a bounce out of Intel Stock.
Buying Call Options on Intel Stock
For those investors who like to buy and sell options, buying a Oct $23 call option this morning could have been done for .80 cents and the Sept 22 $23 call could have been bought for .40 cents. As it is, the call option closed at just .47 cents. Any kind of bounce could easily double the Sept 22 call option.
I love to sell puts but for the more adventurous buying call options with the stock technical timing tools showing the extremely oversold readings below, does make a lot of sense.
Volume Indicator For Intel Stock
The volume indicator for Intel Stock is an excellent indicator to be watching. Note how each day the volume has declined. The first day of the announcement, Intel Stock was dumped by thousands of investors. The next day investors continued dumping but the third day (Tuesday) there was a lot of interest in buying shares. Today sellers were back but again the volume is falling back to normal ranges. In most cases this means the pressure for selling is evaporating and normal buying and selling will return to Intel Stock. The majority who wanted out of Intel Stock are out.
Here is why I was doing put selling today in Intel Stock at the $22 strike
Don’t Want To Own Intel Stock?
if you do not want to own Intel Stock shares, then you have to wait for the stock to turn back up, and for volume to reverse. You want to see more buying volume (green bar climbing) each day as the stock climbs. That will be the sign that Put Selling is safer again. You will still want to stay well out of the money and that will be the problem because put premiums will shrink quickly once the stock turns back up.
Intel Stock Put Selling The $22 Strike Summation
This is why I stepped back into Put Selling today. I have lots of confidence that Intel Stock is still a very good buy and by Put Selling Intel Stock today, it spreads out my naked puts from $22 to $26. I also know by Put Selling today I earned a very good premium going into October. If the stock turns back up those put premiums will decline quickly. Since I have no trouble owning the stock I see no need to wait to sell the $22 strike puts and $22 is the bottom of solid support as far as I can tell from my support and resistance charting of Intel Stock.
This Intel Stock Chart shows where support lies based on volume.
I did just 5 naked puts which stays within my plan and within my goals. I have a solid rescue strategy of rolling any in the money put options at the ready and I like Intel Stock at these levels. As I have mentioned often, the importance of having a plan and knowing it will work is important when investing.
I have a lot of cash available for my trades and nothing new on the near-term horizon tells me that stocks are going to collapse overnight. I like what I see in Intel Stock and that confidence is all it took for me to put more capital at risk in Intel Stock.
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