Practice Patience on Intel

Intel (INTC) doesn't have quite the same influence it once had on the markets, but it still will have an influence Wednesday following tonight's earnings report, at least on sentiment. Between INTC and Bank of America (BAC), we should be able to get some additional trading volatility in the morning. But I'm not touching BAC here. It's a bit tough from the options side, as I just don't see a trade I find attractive from a risk-reward standpoint. INTC is a bit different.

I hold INTC stock, but I will say I'm not overly optimistic into earnings. The chart looks benign here, so it isn't as if I'm overly bearish either. In fact, I see INTC only moving in the $0.75 range, which matches up well with the current options market. When I see this type of setup on INTC, where multiple trendlines are hitting with the same projections as the options market, I'd rather tackle the trade with ratio-put spreads. These spreads are designed to be low or no cost with a price range in mind. I generally set up my ratio-spread trades to be net short volatility....253 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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