Intel Corporation (INTC, quote) has been in downward spiral for the past 6 months as traders leave the chip maker on concerns of a landscape shift away from the desktop to tablets and other mobile devices. To see just how of impact the mobile landscape is look no further than the giant stodgy software maker Microsoft (MSFT, quote) as they ready their release of Windows 8 which attempts to branch out the Windows OS into the mobile space.  Even their announcement today surrounding their XBOX music is an attempt to move away from the desktop.

Intel’s desktop bread and butter and is at jeopardy and when you really did deep down not made any real headway into the frontier losing ground to companies like ARM Holdings (ARMH, quote).

Electronic mobile/tablet purchasing is even approaching on the toy space as reports are out now that toy buying is down as kids want e-readers, tables, iPods and I know of no kid that is not begging for iPhone by Apple (AAPL, quote).

As if that wasn’t enough Advanced Micro Devices has already had disappointing earnings and as a result cut forecast.  Then today AMD announced it will be cutting its workforce by 30%.

There is a lot of headwinds pushing this name lower and although it up today on a analysts who said today thinks will meet or beat expectations I have to fall back and look at space in which they are playing in.  Dell Computers (DELL, quote) and Hewlett Packard (HPQ, quote) are drowning in the space as well both stocks are sitting on their 52 weeks low for a reason.

Technically speaking we are looking a picture that aligns with the fundamentals.  Looking at the daily chart we find the current Fibonacci wave from (A) at $27.79 and (B) at $22.23 with the 52 week low hitting just above the 18% extension level.  As with many new 52 week lows the next session typically bounces off.   Price continues to remain below the downward trendline and (B) section of the wave while still remaining below the key T3 Tislon indicator.

With Intel’s earnings schedules for release tomorrow after the bell I want to look a short position and as always I like to define my risk and will look at a Put option as a directional play ahead of the earnings announcement. I also want to give myself a little time for the paly work out in case we the numbers are not as bad as I think they will be.

Intel’s Bottom Line: I want to buy the November 21 Puts for $.46 or better and my ultimate target price for the underlying is about $18.80 as this is the 61.8% extension level.

Option trading pose risk and is not everyone.  Before placing a trade you should consult a broker.