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Big trader is looking for rebound in Intel

A visitor walks past a notebook showing the Intel logos during the 2013 Computex in Taipei on June 4, 2013.
Mandy Cheng | AFP | Getty Images
A visitor walks past a notebook showing the Intel logos during the 2013 Computex in Taipei on June 4, 2013.

A large trader is looking for Intel to rebound as it tries to hold onto a key technical level.

Intel was down 0.52 percent to $21.92 on Friday, the second consecutive close below its 200-day moving average. The chip maker gapped down from above $24 on July 18 after missing second-quarter estimates on weak PC sales, and the stock has continued to trend lower trending lower since.

OptionMonster's tracking systems detected the purchase of 13,000 September 25 calls for $0.03 and the sale of 13,000 September 19 puts for $0.02. So the trader is paying a penny to ride a rally through the long calls, but the short puts mean that he or she would be on the hook to buy shares around $19 if they fall below that level by expiration in mid-September.

Total option volume in Intel was nearly 5 times its daily average for the last month. Overall calls outnumber puts by 5.5 to 1.

—By CNBC Contributor Mike Yamamoto

Additional News: Intel cutsannual revenue forecast amid slump in PC sales

Additional Views: Worries over Intel are overblown: Pro

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Options Trading School:

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Disclosures:

Mike Yamamoto is managing editor at OptionMonster. Yamamoto has no positions in INTC.

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