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Technology Stocks : Intel Corporation (INTC)
INTC 46.47-4.5%Jan 30 9:30 AM EST

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To: P.Prazeres who wrote (7911)1/12/1997 8:30:00 AM
From: P.Prazeres   of 186894
 
Jack,

Taking a look at the open interest on options:

I noticed this week that the Feb 150 calls were pretty active. The open interest was less than 1000 on Monday and stands at 5678 on Friday.

With respect to the January series: the 140's have the largest open interest at 16,931, followed by the 150's at 13,952 and the 145's at 13644. So staying within the 140 to 150 range on Monday and Tuesday will be of no surprise. On Monday, I wouldn't be surprised to see a last hour "selloff" for some unwinding of the Jan140's. In my opinion, if that happens, it would be a great trading buying opportunity of some of the Feb calls.

I think that if everyone expects a selloff on Wed morning, then we won't see it. Those who are afraid of holding on until Wed will unload there shares in a panic drivien selloff on Mon (if that actually occurs)...and then on Tuesday morning as a follow through to Monday. Then by Tuesday afternoon, Intel should be off to the races in anticipation of what I think will be a spectacular earnings announcement with great forward looking statements and maybe even a stock split....catching all those that sold on Mon and Tues off guard and thus adding to the price rise on Wednesday....Finally, by the end of the week, some profit taking will be in order to bring the price back down to 150 or so.

The above is just a scenario of what may or may not occur.

Paulo
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