Intel’s stock fell over 10% to $47.29, raising worries among retail traders. Chart analysts had predicted this drop because Intel reached a resistance level, with the earnings report triggering the decline. Technical traders are getting ready to place buy orders at specific points. Two possible buy targets are set at $44.00 and $42.00. The $44.00 level is a pivot point that might serve as a support, while $42.00 is crucial because it aligns with a trendline from August’s lows. These levels create good opportunities for day and swing trades. Traders should keep an eye on the $44.00 level for quick chances and also consider $42.00 for long-term investments. The $42.00 level is predicted to attract notable market activity and is seen as a strong point for institutional investors, offering favorable risk-reward ratios. The main strategy is to buy during this downturn, capitalizing on market fear and resetting conditions. We recall the significant drop in Intel’s stock after its earnings report last year in January 2025. It gapped down over 10% below $50, causing panic among many retail traders. However, that fall toward the $42 support level turned out to be the perfect buying opportunity we had been waiting for, leading to a profitable multi-week swing trade. Today, the situation feels similar as we approach another earnings report next week, with the stock currently near $58. Implied volatility is very high, with an IV Rank of 85, as the options market anticipates a possible 9% swing in either direction. This elevated premium is what options traders seek when selling options. Instead of buying the stock, we should explore the options market to sell put credit spreads below the current price. A solid approach would be to sell the February $45 strike puts while buying the $42.50 strike puts for protection. This strategy allows us to collect a premium while managing our risk, profiting if Intel stays above those key support levels that performed well last year. For traders with a more optimistic outlook, the best play is to wait for the post-earnings volatility decline. After the announcement, options will become significantly cheaper no matter how the stock moves. If Intel drops into the low $50s following the news, we can then buy calls with a few months’ duration at a much better price.

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