Intel Corp recently saw the U.S. government take a 10% equity stake in the company, positioning it as a strategic asset in the national security portfolio. This move has boosted investor confidence, leading to an 80% increase in Intel’s stock price this year. The upcoming earnings release on Oct. 23 will be closely watched in light of this new government support. Options traders are considering bullish strategies like bull put spreads or bull call spreads, taking advantage of elevated implied volatility. The long calendar spread is also a popular approach, aiming to benefit from volatility contraction post-earnings. With Washington backing Intel, the market sentiment has shifted, making the company less susceptible to sharp downside corrections. This new dynamic adds an intriguing element to Intel’s trading landscape, with the government’s involvement potentially softening the stock’s response to earnings surprises. Whether this industrial experiment will lead to a corporate revival remains to be seen, but the government’s investment has certainly injected new credibility into Intel’s turnaround efforts.

Read more at Barchart: How to Trade the ‘Government Put’ in Intel Stock Ahead of Q3 Earnings