Intel Corporation (INTC) is scheduled to report earnings after the closing bell on Tuesday. Consensus analyst forecast $14.45 billion of revenue with an EPS of $0.65 (last quarter’s EPS beat by nearly 6%, with the stock rallying over 9%).
Market Recap
Indeed, shares have been seemingly unstoppable in 2014, having rallied 22% year to date. The stock has traded in a 52-week range of $23.03-$35.56 and has rallied on earnings news three of the past four quarters, but only four of the past eight.
Options
The INTC Oct 32 straddle expiring this Friday is projecting a move of about $1.70, or 5.3%. One of the strongest headwinds facing the chip manufacturer was the imploding PC market, which has since stabilized. Furthermore, Apple (AAPL) is rumored to be using the Intel M Core processor in its new Macbook Air Retina.
Trade Idea
With the earnings report two days before the Apple announcement on October 16, I would only look to trade Intel earnings to the long side.
My Trade: Buy the INTC Oct 33-34 Call Spread for $0.25
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
