At Extreme Investor Network, we strive to provide you with unique and valuable information to help you make informed investment decisions. Today, we want to talk about the impact of Chinese officials’ efforts to cut U.S. chipmakers out of the country, specifically on Intel and AMD.
Despite the challenges Intel has faced, much like a boxer looking to make a comeback, Intel is determined to reclaim its chipmaking relevance. The recent directive from China to cut out foreign chipmakers has added to the volatility surrounding Intel’s stock.
Intel recently unveiled its latest artificial intelligence chip, Gaudi 3, in an attempt to gain market share from AI leader Nvidia. This new chip is priced at a fraction of the cost of Nvidia’s leading chips, presenting a promising opportunity for Intel.
One strategy to take advantage of the current discount on Intel and the increased volatility is to sell a put spread. By selling the INTC May 17 $36 put for $1.80 and buying the INTC May 17 $33 put for $0.65, you can collect a net credit of $1.15 per lot sold. This trade not only aims to generate income but also allows the trader to potentially own this essential U.S. chipmaker.
It’s important to note that the above content is for informational purposes only and does not constitute financial, investment, tax, or legal advice. Each individual’s circumstances are unique, so it’s crucial to seek advice from a financial or investment advisor before making any decisions.
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