INTC shows an M-pattern; a daily close below 113.84 triggers a sell setup.

The last stock we will talk about is "Intel". Now, just as in the previous two cases, we look at W models and M models. Take a moment now. Try to identify one of the models. We will return to discuss this.

For this stock, and quite clearly , using these Bollinger Bands, there is a clear M pattern that may be forming here. What does that mean? Well, this means the opposite of the W pattern.

We have seen one or two bottoms here that touched and even broke through the upper Bollinger Band. We then saw a pullback and decline towards the middle Bollinger Band, followed by an upward surge that retested that move, creating that M-shaped pattern.

Now, like the other two stocks , the trade hasn't been triggered yet, but a daily close below 113.84 would be the area where I'd like to look for a sell position.

that deal was with Intel ( INTC). If I wanted to take this position, given that it was trending downwards and had a bearish reading, how would we turn this into an options trade?

So, we have a directional bet on a downward trend. In the world of options, this is called " buying a put option" (Put). Here, buyers purchase a put option and anticipate a decline in INTC's stock price.