Intel (INTC) is starting to show signs of life after years of underperformance, and the market is finally taking notice. The stock has rallied sharply, up over 40% since Feb. 7 before dipping 5% today…
And with shares still trading at what many consider dirt-cheap levels, the question now is whether Intel is an overlooked gem or a value trap waiting to catch investors off guard.
A Legacy Tech Giant Waking Up
For years, Intel has been stuck in the shadows of its faster-growing competitors in the Information Technology (XLK) sector. The company lost its dominance in the semiconductor space as rivals like AMD (AMD) and Nvidia (NVDA) surged ahead in high-performance chips.
But with a new strategy, improved execution and the potential for a manufacturing turnaround, Intel’s stock has started to move higher.
The rally in recent weeks has been impressive, with Intel filling a gap in the low $20s and pushing toward $30 before giving back some gains today — but nothing just goes straight up.
That’s a strong run for a company that has spent much of the past few years lagging behind its peers. But the real opportunity could be in the months ahead if Intel continues to execute its turnaround plan.
A Technical Setup Worth Watching
From a technical perspective, Intel has room to run. The stock is pushing through key resistance levels, and if the momentum holds, it could fill a larger gap in the $30 to $35 range.
Options market makers are currently pricing in an expected move of about $11 by the end of the year, meaning a run into the mid-$30s isn’t out of the question.
For traders, that means keeping a close eye on short-term price action. If Intel gets into the low $30s and struggles, it may be worth taking profits. But if the stock continues to grind higher, it could become a longer-term hold, especially if its earnings and execution show real improvement.
Playing the Trade Smartly
Instead of simply buying shares outright, I’ve been using a mix of covered calls and diagonal spreads to maximize my returns. If Intel keeps climbing, I’ll look to roll the position further out in time and add even more premium to my bottom line.
This is the kind of setup that fits perfectly into an income-based trading strategy. It’s a stock with improving fundamentals, a strong technical breakout, and option premiums that still make it worthwhile to sell calls against.
Intel is far from the dominant chipmaker it once was, but it’s also no longer the clear-cut laggard in the space. The company has a lot to prove, but with a beaten-down valuation, improving sentiment and a bullish technical setup, it’s worth paying attention to.
If Intel can keep this momentum going, it could be one of the better turnaround stories in tech. But for now, I’ll keep taking profits where I can and managing the trade smartly — because nothing is guaranteed in trading…
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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