Intel shares have risen for nine consecutive days and were higher in early trading on day 10, up 62% over the run. Since the US took a position in Intel in 2025, the stock has climbed more than 250%, with a market value of $330 billion.
Using Intel’s 2027 earnings forecast, the stock trades on a forward price-to-earnings ratio of 60x. This level is described as high compared with other semiconductor firms.
On the daily chart, Intel is about 1.75% away from a resistance trendline linking highs from October 2025 and January 2026. The analysis points to a potential turning point near $67 if the price reaches that line.
The same analysis also mentions a possible move back to $53 per share in the coming weeks.
Given Intel’s massive 62% surge over the last ten days, we believe the rally is reaching a point of exhaustion. The extreme valuation, with a forward P/E of 60, suggests the current price is unsustainable and detached from its 2027 earnings reality. For traders, this is a signal to begin positioning for a downturn, with buying put options for May or June 2026 being the most direct strategy.
This view is supported by recent market data showing a significant increase in bearish sentiment. Last week’s options flow data revealed the put-to-call ratio for Intel climbed to 1.3, its highest level since the government intervention we saw in 2025. This indicates that more traders are betting on or hedging against a price drop than at any point during this recent rally.
The stock is now approaching a critical technical resistance level at $67, a trendline that marked the highs in both October 2025 and January 2026. Historically, stocks with this kind of parabolic rise and extreme valuation often face sharp reversals at such major resistance points, similar to patterns we observed in other tech names during the 2024 market correction. Therefore, selling out-of-the-money call spreads, like a $68/$70 spread, could be a prudent way to capitalize on both a price rejection and elevated volatility.
As we look for a pullback towards the $53 per share level, a bear put spread offers a defined-risk way to target this move. For instance, buying the May 2026 $65 put and simultaneously selling the May 2026 $55 put would structure a trade to profit specifically from the stock falling back to this support zone. This strategy allows traders to benefit from the anticipated downward move while capping potential losses.
