[INTC] update

Right on cue per the backlink, Intel shares seem to be rising into red 2.  Options people, listen up.  This model could turn out to be right or it could turn out to be wrong.  I don't know how it will turn out or why would I be wasting my time writing blog entry to strangers?  If I knew for sure what would happen, I'd just gamble big, long and hard, make a gazillion, and then go buy an island somewhere and let the world collapse around me.

Having said that, the Intel model I have been working on for some time has been pretty good so far.  Because of this, I think odds are pretty good that the model is right, that wave 1 of 3 did not have the power to break the neckline support but that after taking a step back into 2 of 3 and getting a head of steam up, 3 of 3 will smash it like a bug and take out all the stops that have got to be sitting just below red 1 right now.  This is how gaps down are formed.

Put options love gaps down and because of that they love 3rds of 3rds which is what I think begins for Intel before this very week ends.  Another 50 cents to $1 more up and then the trap door opens.  If there was ever a high odds time to buy puts, it is into the peak of 2 of 3.



Given the expected movement for red 3, I think that the Jan 2016 22s will make bank.   I plan to pick up a nice bundle of them as soon as I think red 2 is done.