On Friday’s Options Action, the crew analyzed the performance of semiconductor stocks. Semiconductor have rallied significantly over the past week after couple of large earnings reports. Intel has had a poor performing quarter but has started to bounce higher off its $46 support level. Coupled with a strong outlook for 3rd quarter earnings and AMD’s delays in their latest chip technology, provides support for INTCWealth Strength IndexAAPL is Extremely Up and trending Up stock. Expecting a move higher off its support level, Dan Nathan suggests buying a Sept/Nov 50 Call Calendar for a $0.95 Debit. As of Friday’s close, this spread is trading at $0.96.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: INTCWealth Strength IndexAAPL is Extremely Up and trending Up Options Action