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 Views: Worries over Intel are overblown: Pro
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Mike Yamamoto is managing editor at OptionMonster. Yamamoto has no positions in INTC.