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Semiconductor industry

Midday Options Update: Intel Stock Faces Resistance Amidst Increasing Sentiment

Strategic Insights

— 1 min read

Intel's stock performance has been lackluster in 2005, with a gain of only 0.98 percent since the beginning of the year. Despite this, the company's quarterly results have not met market expectations, and the stock gaps down at the opening of the markets. Recent upgrades to a "strong buy" rating have done little to alleviate concerns about the company's prospects.

Key Takeaways:

  • Intel's third-quarter profit was $2 billion, or 32 cents per share, beating the same period last year but missing expectations by a penny per share.
  • Sales for the quarter rose 18 percent to $9.96 billion, but revenue barely beat expectations for $9.92 billion.
  • The stock's Schaeffer's put/call open interest ratio (SOIR) stands at 0.44, ranking in the 13th percentile of its annual range, indicating sentiment is close to an optimistic extreme in the pits.
  • 0.9 percent of the float is sold short, which is a relatively low percentage, indicating bearish bets are not significant.
  • 30 analysts rate the stock, awarding it a "strong buy" rating, despite the overall sentiment being pessimistic.

Statistics:

  • Intel's stock price is trading at the same levels as November 1998.
  • The stock has a gain of negative 0.98 percent in 2005.
  • The company's quarterly results have not met market expectations.
  • The stock gaps down at the opening of the markets.
  • 61,308 contacts of the October 25 put (INQ VE) have seen volume of 9,498.
  • The stock has strong resistance at 25 and weaker support at 20.
  • The 160-day moving average provides support, but the stock has a ways to fall before that trendline can help.

Sources:

  • Schaeffer's Midday Options Update
  • Eastman Kodak (NYSE:EK) quarterly report
  • IBM (NYSE:IBM) quarterly report
  • Honeywell International (NYSE:HON) quarterly report
  • Office Depot (NYSE:ODP) quarterly report
  • Intel (NASDAQ:INTC) quarterly report
  • Zacks analysts' ratings for INTC
  • Schaeffer's Investment Research website and commentaries
  • Forbes and Barron's citation of Schaeffer's Research as top options website

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