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March 3, 2006

Intel surprise, or was it?, Fri., Mar. 3, 2006, 9:39 AM

I opined two days ago that somebody big knew why huge buy orders were being entered on the chip stocks. Well, Intel just dropped the other shoe. People who have a vested interest in keeping this equity market from crashing knew that Intel would be reporting a serious revenue warning. And so they tried to start a rally in advance.

And their talking heads have been all over Big Media to tell you why Advanced Micro Devices (NYSE: AMD) and Broadcom (NDQ: BRCM) were the new favorites.

And just before the Intel news, there was an incredible (yes, as in not credible) timing of an announcement by Google (NDQ: GOOG) that the company would switch from Intel to Advanced Micro chips.

Of course these people are just a little smarter than say Martha Stewart in ensuring that Eliot Spitzer's office does not come calling.

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There is now 32 million INTC shares traded. Pretty soon if this keeps up, it will be time to buy. It's already time to write put options.

Posted by Posted by Bill Cara on March 3, 2006 09:40:42 AM | Category: 45 Info Technology

Discourse

The excellent Kate Welling interview you posted recently is no longer available in HTML format, but the PDF is still working.

It's strongly recommended that people read this excellent piece.

http://www.weedenco.com/welling/Downloads/2006/0804welling022106.pdf

As far as going long Intel, I think that's a big mistake as there will be more shoes to drop in 2006. I suggest you wait until it's in the low teens to play the long side (if at all). Might it bounce 10% in the short term, perhaps, but they've got a lot more problems that are yet to reveal themselves.....

All the best,

Jeff

Posted by: GreenspanScrewedUS [TypeKey Profile Page] at March 3, 2006 1:01 PM [link]

Hello Everyone,

This is my first post. I am new to the stock market and have been educated by this site. I want to understand the rationale behind writing Put options for INTC. Also, any good reference on options trading is welecome.

Thanks and Good Luck

Posted by: ilelwan [TypeKey Profile Page] at March 3, 2006 1:19 PM [link]