Option Bulls Expect Move in Intel Shares
Intel saw heavy option activity yesterday as its shares continued to creep higher.
Several large blocks of the weekly January 26 calls were bought for $0.12 as more than 6,300 contracts traded at strike versus previous positioning of 5,048, according to OptionMonster's systems. The calls expire on Friday, so the buyers are looking for a quick move in the next few sessions.
These long calls lock in the entry price traders must pay to buy shares. If the chip giant runs higher, the calls can deliver major leverage, but if it doesn't, those options will probably expire worthless.
Intel shares rose 0.85 percent to $25.47 Monday. Overall option volume in the name was roughtly twice its daily average.
Earnings don't come out until Jan. 19, so yesterday's call buyers are definitely looking for a move before that.
—Najarian is long INTC.
Additional News: Intel Cuts Revenue Outlook, Citing Supply Shortages
Additional Views: Sterne Agee Downgrades Intel
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