Intel has been positioning for growth in mobile devices, and the bulls are positioning for a rally.
The option paper was flowing in the chip maker yesterday, with more than 388,000 contracts trading in total. Of those, more than 238,000 were upside calls.
OptionMonster's tracking systems detected a giant trade in the August 25 contracts, which were sold and rolled up to the September 27 and January 28 strikes, a bullish move that is looking for more gains by later expirations. Big chunks of 15,000 and 17,000 contracts traded in those.
Calls lock in the price where shares can be purchased. They're cheap compared to the stock, so they can generate some big leverage if shares move higher in coming months. Rolling out from August to September and later allows more time for the trade to work.
Intel rose 0.48 percent to $25.36 yesterday. The run has been swift and strong, with a gain of 16 percent since the start of April.
Volume was also large in the short-term weekly options, with a heavy skew toward the upside calls.
—By CNBC Contributor Pete Najarian
Options Trading School:
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com. Najarian owns INTC calls.