Intel’s earnings report beat both revenue and bottom line, but soft guidance prompted profit takers to sell the recovering chipmaker, sending the stock down more than 15% to $46. The sharp decline comes after the former major chipmaker has rallied around 150% since January 2025. I believe that Intel will continue to rise, contrary to consensus, so I would like to use options to establish a long “free” position. The most commonly cited average street price targets right now are clustered in the $42 to $48 range. It’s important to remember that in Q1 2025, when INTC was trading below $20, analysts’ average 12-month price target was around $28-$30. What was the impetus for turning around the slumping American semiconductor manufacturer?My name is Uncle Sam. The slumping chipmaker hit rock bottom after the Biden administration announced approximately $20 billion in subsidies (grants and loans) to Intel under the CHIPS and Science Act on March 20, 2024. Under the Trump administration, the US government invested $8.9 billion in Intel in August 2025, bizarrely purchasing a 9.9% stake (433.3 million shares at $20.47 per share). The total amount of funding Intel received from the U.S. government under both administrations was $11.1 billion, not the $20 billion previously promised. I believe Intel is an essential name for the U.S. economy, and the government’s “Sopranos-like” stock ownership makes me want to own this company for the long term. Intel was the best performing stock in my Essential 40 Stock ETF $ESN in 2025. But Intel still faces significant headwinds, and if you’re on a chipmaker racetrack, Intel remains a latecomer. Intel’s foundry services business, which manufactures chips domestically for internal and external customers, was not yet profitable as of the latest data on fourth-quarter 2025 revenue. I want to sell a put spread. This allows us to collect returns and define Intel’s downside risk. Add an extra leg to this spread to get higher back-and-fills for volatile stocks. I would like to use the option premium I have collected to purchase an upside call. This will allow them to participate in the Intel Rally when it resumes in the first quarter at “zero cost.” The trade was a $45 INTC put on March 20, 2026 sold for $3.50. I bought a March 20, 2026 $40 INTC put for $1.25. I bought a March 20, 2026 $52.50 INTC call for $2.25. The cost of this spread is $0 to the investor, and the investor is participating in every move in Intel above $52.50, while still defining the risk. Head to the downside by selling the $5 wide put spread. Intel was trading at approximately $45.50 Disclosure: Intel is a long-term holding and owns this spread All opinions expressed by CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, its parent or affiliates, and may have been previously disseminated on television, radio, the Internet, or another medium. The above is subject to our Terms of Use and Privacy Policy. This content is provided for informational purposes only and does not constitute financial, investment, tax, or legal advice or a recommendation to purchase any securities or other financial assets. The Content is general in nature and does not reflect any individual’s unique personal circumstances. The above may not be appropriate for your particular situation. Before making any financial decisions, you should strongly consider seeking the advice of your own financial or investment advisor. Click here for full disclaimer.
