As we close out the 2020 trading season, it's time to take a look not just at the top performers for the year, but some of the worst as well.
To be fair, some stocks have just had a rough year - the early stages of COVID-19 really hit hard in so many corners of the market, leaving certain stocks with a longer recovery than others. But for some, a long-term recovery may not be in the cards at all...
If we take a look at the eight tickers in the Nasdaq 100 currently trading in a bear market, one of them may come as a shock.
Intel Corp. (NASDAQ: INTC), a stock I've often referred to as a "T-Rex Technology Stock" - arguably one of the founders of modern computer chip technology - has had a particularly lousy year. Shares are down over 20% year to date while the Nasdaq itself is up nearly 50%. Not to mention, a major institutional investor, Third Point LLC, recently urged for large-scale revisions to its business model, something my experience recognizes as a huge red flag for this stock, despite misguided optimism from less-seasoned investors.
And we're not talking about a retail stock here, or another company forced to close its doors during stay-at-home orders - Intel is a manufacturer of technology designed to make living in isolation more bearable - a product that should be thriving as the rest of the world begins to embrace the advent of 5G.
But despite all of these advantages, Intel's 50-day moving average is falling into a steeper decline every day, with shares now trading well below their 20-day moving average.
Needless to say, this doesn't bode well for Intel stock over the long term.
I'm expecting INTC stock to fall to $35 or lower, but you can turn this 40% drop into 100% gains or more with this put trade...
Trade details:
Action to Take: Buy to open INTC July 16, 2021 $50 put (INTC210716P00050000) using a limit order of $5.65.
This Coin Could Put Bitcoin's 2020 Rally to Shame...
The crypto market has been on fire this year, with Bitcoin surging over 231% - surpassing even Tom Gentile's generous projection.
Now, Tom's got his sights set on another cryptocurrency, one trading for a fraction of the cost, with a profit potential that could dwarf Bitcoin's jaw-dropping returns. In fact, we're betting this tiny microcurrency could hand you 20x your money by year's end - thanks to one huge catalyst...
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.