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Technology Stocks : Intel: Short Term Stock and Option Trading/Strategies
INTC 37.24-2.8%Nov 6 3:59 PM EST

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To: Nancy who wrote (65)3/12/1997 12:19:00 AM
From: Henry   of 220
 
Nancy, Thanks for the reply.

I don't know what catalyst intel had which pushed it to 165 just a month ago. There was a $6 drop after the earning and then intel announced a price cut on its popular pentium cpus, but the cut was not as much as expected. I guess investors interpret that as thge demand is too strong. Now it has came back. Who knows waht's the next catalyst. I am just hoping there's some kind of anticipation for another breakout earning. It's not impossible due to the new product cycle and some guy(I believe it's the CFO of intel) already stated they are on track to make the numbers even at its conservative estimate.

The thing worries me most is the decrease in the price volatility(you'll be happy if you wrote puts or calls. I'd love to see big intraday(or interday) price movement so that you always have a chance to close out position at a favorable price. 150 is not impossible since it's only 5% appreciation from current level. intel had +/- 10 points intraday movements many times before. The closing price does not neccessarily reflect that. But this week the price movement is more limited and thus the volatility has come down a bit.(you can find the implied valatility on Bloomberg). But the it may pick up due to the uncertainty in upcoming earnings and it will come down once the earning is announced.

As for a possible upgrade from Brokerage houses, I am not holdding my breath for it since most of the big boys had it on strong buy already. Where do they go from there? Earnings uprevision is possible though.

Henry Wang
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