Buy Alert: January 14, 2014

Marcus Haber | January 14, 2014

Buy Alert: January 14, 2014

Trade Details

Buy Intel (INTC) March $26 Calls for $1.15 or better

Why?

INTC is up 3.5% today on an upgrade from two research firms, including JP Morgan (JPM). The JPM analyst believes the company will have better than expected earnings – which come out this Thursday after trading hours.

Moreover, despite a strong 2013, Intel shares remain inexpensive relative to the market. Plus, even after the big move today, INTC calls are dirt cheap. In fact, the ATM calls are so cheap, we can buy March options instead of February and give ourselves an extra month.

This could be a very short-term trade since earnings come out Thursday. The stock does have plenty of support below the current price, so I believe this a relatively low risk strategy.