Buy Alert: January 11, 2013

Buy Alert:  January 11, 2013

 

Trade Details

Buy Intel (INTC) February 2013 $22 Calls for $0.55 or better

 

 Why?

We’re kicking off earnings season with a trade on semiconductor powerhouse Intel.  Why Intel?  Because most people aren’t expecting much from next week’s earnings release.

You see, investors are concerned Intel will be hurt be the slide in PC sales.  They’re assuming it will translate into worse than expected earnings.  But, I believe that’s already built into the stock price.

More importantly, Intel is involved in a heck of a lot more than PCs.  They produce chips for mobile devices and tablets – both of which are seeing explosive sales.   There’s also growing demand for chips in emerging markets like China.

What’s more, Intel is already a cheap stock fundamentally.  And, it’s trading well below its 200-day moving average.

Let’s grab the February calls.  Earnings are next Thursday after close – so be prepared for some action at the end of next week.

 

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Category: OTW Buy Alerts