creamer has some advice for you:
Intel Calls Beckon
By James J. Cramer
RealMoney Columnist
4/13/2004 10:50 AM EDT
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Intel (INTC:Nasdaq) BULLISH
Price: $27.52 | 52-Week Range: $16.65-$34.60
The crowd is negative on Intel.
April 30 calls at 10 cents paired with a short of common are a good solution.
The April 27.5s at 65 cents are too pricey and hard to read.
Position: Long
Punt-a-licious!
That's the only way I can describe the menu of options offerings that face Intel (INTC:Nasdaq - commentary - research) gamblers today. I mean, I can't recall a time when the crowd has been more negative about the company that really led the rally last year. I don't know a soul who thinks Intel can do anything. You can start off with house bear Jesse Eisinger with his downbeat column in The Wall Street Journal. Then there's all of those chartists. When you listen to them, you think you are trading a car-wash company with a security business. Oops, that's Mace Security (MACE:Nasdaq - commentary - research). Of course, a bunch of the analysts downgraded the stock right here, expecting it to go to the low $20s so they could get in, including one analyst who upgraded it at $34. Hoo-hah!
Which is why I salivate at the April 30 calls for 10 cents. I dream of them. They are popcorn, the giant bucket, the ooh-la-la, butter-smothered, king-sized, can't-get-enough-wish-I-had-more type of popcorn that I used to like to take 2,000 of, just for ammo back at my hedge fund (I'm restricted from trading options now). Upside surprise? Maybe a triple. Then I would short common against them until the cows came home and hope for some negative news from the world, which I knew the world would deliver.
Bad quarter?
I still could have dinner, because popcorn doesn't spoil your appetite.
I know, I know, the April 27.5s at 65 cents seem appetizing. But those are candy bars. They are expensive. I can't give you a true read of them. So give me a half a G's worth and don't forget the napkins.
Yep, Intel call time.
I'd buy enough of them so I wouldn't have to get up in the middle of the movie, but not so many that I'd hate the ending no matter what. |
