Buy to open the INTC April 29 puts (INTC160415P00029000, $0.38, down $0.06) at current levels.

Dear Momentum Options Subscriber,

I have a bearish trade to add to our portfolio this morning on a stock that seems to have peaked just above $30. A backtest to the $28 level could be in play, and the put options I’m recommending will easily double if shares fall below $28.20, technically, by mid-April.


Intel (INTC, $30.84, up $0.21)

Buy to open the INTC April 29 puts (INTC160415P00029000, $0.38, down $0.06) at current levels.

Action:  I like these put options at current levels, and you can use a Limit Order up to $0.50 to get the best fill. These are the regular monthly options that expire on April 15, and I will provide the parameters for the trade in today’s Mid-Market Update.

A “death cross” has formed on the chart for INTC, with the 50-day moving average trading below the 200-day moving average. This is usually a bearish setup for further weakness over the next month or so.


Short-term resistance is at $31-$31.50. A close above $32 would reverse the setup over the short term. Support is at $30.50-$30. A close below $30 should get $29-$28 in play.

These options will expire before the company’s next earnings announcement in late April, so this headline risk is removed.


All prices given in this update are current as of 11:00 a.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options