Intel’s Pain is Your Gain

Take Profits in Your Intel Puts

By Bryan Bottarelli
Friday, March 03, 2006 9:47 AM EST
Fri, 3 Mar 2006 14:47:00 GMT

Dear Bottarelli Research Member,

As I write, Intel (INTC – NASDAQ) is getting slammed, dropping shares of the world’s largest chipmaker to a new 52-week low of $19.86. The company came out today and said that they no longer stand by their previous outlook, lowering their first-quarter revenue from 9.1 billion to $9.7 billion to $8.7 billion to $9.1 billion.

As you can imagine, this down-move is moving your Intel April 22.5 Puts (NQ PX) squarely in the right direction. You purchased them for $2.25, perhaps buying them as low as $1.90, and today they hit a high of $2.70. That’s a nice 20% gainer. Let’s use today’s revenues downgrade as a prime opportunity to take profits!

PLAY: Sell your Intel April 22.5 Puts (NQ PX) at or above $2.60, good for the day.

Lock and load!

Sincerely,

Bryan Bottarelli

Bryan Bottarelli
Editor, Bottarelli Research

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