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The Best Options Trade for Intel (INTC) Earnings

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On Tuesday, October, 18th, Intel (INTC) will release its third quarter earnings results after the bell. The company is a Zacks Rank 1 (Strong Buy), and have a Value, Growth, and Momentum score of C. Intel was upgraded to a strong buy within the last 30 days as well

Dave will look at Intel’s past earnings, take a look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Intel ahead of earnings.

Intel in Focus

Intel (INTC) is one of the world's largest semiconductor chip maker. The Company develops advanced integrated digital technology products, primarily integrated circuits, for industries such as computing and communications. It also develops platforms, which it defines as integrated suites of digital computing technologies that are designed and configured to work together to provide an optimized user computing solution compared to components that are used separately. Intel designs and manufactures computing and communications components, such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products, as well as platforms that incorporate these components. The Company sells its products primarily to original equipment manufacturers, original design manufacturers, PC and network communications products users, and other manufacturers of industrial and communications equipment. Intel Corporation is based in Santa Clara, California.

Intel is expected to report earnings at $0.73 per share according to the Zacks Consensus Estimate. Last quarter they reported an earnings beat at $0.59 per share beating the Zack’s Consensus Estimate of $0.53 per share, and they have an average surprise of 11.86% over the last four quarters.

INTEL CORP Price, Consensus and EPS Surprise

INTEL CORP Price, Consensus and EPS Surprise | INTEL CORP Quote

Intel is trading around $37 a share, and they are near to their 52-week high of $38.36 per share.

Intel is tied to the semiconductor industry, and their industry is in the top 18%. The Semiconductor is a strong industry with strong growth due to strong consumer and business to business demand for Intel’s products. Having said that, Intel faces tough competition from competitors including Nvidia (NVDA - Free Report) and Texas Instruments (TXN). Intel has done a good job being an industry leader for years; however, they have to be mindful of other major competitors.  

Bottom Line

How should investors play Intel ahead of their earnings report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1:00pm on Monday  to see if he’ll be bullish, or bearish. If you are interested this stream and service, then sign up for Zacks Live Trader.

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