The Big 3: NFLX, LULU & INTC

Intel’s explosive 200% year-to-date rally is now showing signs of exhaustion, with Don Kaufman warning that the stock is in the midst of a 'gamma squeeze' fueled by retail and institutional call buying. He argues this unsustainable momentum will likely reverse, citing extreme implied volatility over 100% and an inverted volatility skew—where calls are priced higher than puts—as definitive signs of a fade. Rather than chasing the rally, Kaufman is positioning a bearish put spread on Intel, betting on a pullback to the 100 level. Meanwhile, Netflix faces headwinds from seasonality, rising fuel costs, and subscription fatigue, prompting a bearish put spread targeting a retest of the 75 support. In contrast, Lululemon, trading near all-time lows and massively oversold, is the only bullish pick—a short-term, high-conviction bounce trade using a cheap call spread ahead of earnings. The episode reveals a rare convergence: three high-conviction trades, all short-term, all based on technical extremes and market psychology, not long-term fundamentals.