Trade of the Week: INTC

08/03/2020 9:04 am EST

Focus: OPTIONS

Jay Soloff

Options Portfolio Manager, Options Floor Trader PRO

Jay Soloff discusses an interesting defensive play in INTC, following its weak earnings report.

The big earnings loser last week was Intel (INTC), the semiconductor giant. INTC badly missed earnings with a delay in production of their next-generation chip. The stock price dropped more than 16% on the day after earnings were announced. As you'd expect, options volume was very high during the move, with a surprising amount of action in calls. One interesting trade was a collar trade tied to stock. A trader bought stock while simultaneously selling January calls and using the proceeds to buy January puts. A collar is generally considered a defensive trade.

Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker. 

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