Intel's recovery from Terrafab role concerns is positive; speaker prefers buying over selling.

Let's focus on Intel's stock chart, which is down about 20% from its all-time high reached during the summer, but is still up more than 200% this year.

Intel's role in Elon Musk's "Terrafb" chip project is the focus of morning trading. Yes, as I said, Intel is trying to reassure investors about its role in Elon Musk’s massive “Terrafb” chip project , with its CEO , Lip-Boo Tan, telling Bloomberg that Intel will remain involved in the project, dismissing concerns that TSMC might take on a larger role after Elon Musk said he was in talks with TSMC.

This clarification comes after Intel shares lost more than 5% earlier this week due to concerns about its potential diminished role in " Terrafab".

However, Intel's stock rebounded today, rising by about 1.5% after investors received some of this reassurance.

Despite this, questions remain about whether the chipmaker will ultimately be the project's main manufacturing partner. The fact that Intel is responding positively to this shows, firstly, that there were genuine concerns about this story earlier in the week, and secondly, that this reassurance is meaningful because not only are the chips under pressure today, but Intel is able to recover nonetheless.

I mean, you know , certainly in terms of perspective, I mean, this illustration is interesting because "Terravab " is such a huge project. You might think there's enough business for everyone, but this has clearly worried investors with the idea that TSMC could replace Intel here.

As Alex pointed out, this clearly reflects what investors felt about this company, that TSMC might surpass it or take its market share. Yes, I agree with Alex, you know, Intel was a bit stuck because of those concerns.

Overall , this is clearly good news . I prefer to be on the buying side rather than the selling side, but I would like to make some profit.

Therefore, I will sell a bullish "Iron Condor". I will go further than I usually do; I will sell put option contracts at 105/100 for October 30th on the downside, and sell call option contracts at 125/130 for October 30th on the upside.

I'm looking to collect about $2.75 from that deal. So, Sam, by October 30th, the stock's breakeven points will be at 102.25 for the downside and 127.75 for the upside.

Good. A good look at Intel. As we said, the stock has clearly recovered, or rather fallen a lot , but it is still remarkably high for the year, in triple digits.