Intel has been holding near its 200-day moving average, and yesterday the chip maker saw steady and impressive upside option action.
The November 24 calls lit up early, trading in size for $0.44 and followed by a large chunk that went for $0.62. About 19,500 contracts traded in volume well above the strike's previous open interest of 3,938, showing that new money was put to work.
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These calls lock in the price where the semiconductor stock can be bought, letting investors cheaply position for a rally. They can also generate some nice leverage from even a small movement in the underlying share price.
Intel rose 1.06 percent to $22.91 yesterday, challenging its 50-day moving average. Yesterday's calls, which lock in the price where traders can buy the stock, are looking the shares to test their peaks from mid-June.
Total option volume in the name was twice its daily average. Some 84,000 calls overall versus fewer than 33,000 puts, so activity was definitely skewed toward the bulls.
—By CNBC Contributor Pete Najarian
Additional News: Intel cutsannual revenue forecast amid slump in PC sales
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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.