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On Friday’s Options Action, the crew analyzed the performance of semiconductor stocks. Semiconductor have rallied significantly over the past week after a couple of large earnings reports. Intel has had a poor performing quarter but has started to bounce higher off its $46 support level. Coupled with a strong outlook for 3rd quarter earnings and AMD’s delays in their latest chip technology, provides support for INTC stock. Expecting a move higher off its support level, Dan Nathan suggests buying a Sept/Nov 50 Call Calendar for a $0.95 Debit. As of Friday’s close, this spread is trading at $0.96.

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