Friday, September 16, 2016

Aqumin Volatility Newsletter - 9-16-16 $INTC

The chips heat up for INTC

This is yet another week where stocks just sit and wait for the Fed to say something about rates.  The only real anticipation is whether we have a Brexit like surprise or not.  A little CPI is going to nudge the Fed one way for sure.  The tit for tat fine on DB is roughly the same as the tax bill for AAPL.  Trade wars could take on a new meaning.  In short the powers that be did not add value to the broad market this week and the very wild volatility early in the week is dissipating into Sep 21st.  A quick glance at my AlphaVision® landscape had sentiment telling a better story.

Tech is smoking hot.  While financials and oil (XOM is the big sad red building) hang out in the bargain bin, chip stocks are back.  Note that INTC (largest green building) is leading the news sentiment charge even over AAPL which in itself is noteworthy after the 10% run in AAPL the last week.  While there are growth rumors around INTC, maybe in an IPhone, the big semi appears to be selling more stuff.  The trend is looking very favorable.  A short put rolling routine in INTC yields about .66% per week at the 37 strike which is a bit above normal.  That would get you in before the good news.

Disclosure: Long INTC

Read more from Andrew at Option Pit

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