Mike Khouw’s Intel Corporation (INTC) Trade |
posted 11:48 04/05/11
On CNBC's Options Action, Mike Khouw suggested that investors should consider a long position in Intel Corporation (NASDAQ: INTC). He explained that Intel (INTC) struggled recently, but usually it bottoms around 9.5 times earnings. Intel (INTC) is currently trading at 9.6 earnings, and Mike Khouw thinks that it would be a good idea to have a long position in this stock.
He thinks that it is better to use options to make that purchase. Specifically, Mike Khouw wants to buy the May 20 call for $0.40. The break even for this trade is at $20.40, and Intel Corporation (NASDAQ: INTC) closed today's session at $19.49 with a decline of 1.17%.
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