Intel Sees Jump in Call Trading as Optimism Builds

Optimism shines brightly on the shares of semiconductor giant Intel (INTC). The Schaeffer's put/call open interest ratio for the stocks stands at 0.61, as call open interest easily outnumbers put open interest ratio among near-term options. This reading is also lower than two-thirds of those taken during the past 12 months, pointing to a lingering optimism among short-term speculators.

There was a slight preference for calls in trading on Wednesday. More than 121,700 option contracts changed hands yesterday, which is more than double the stock's average daily trading volume of 57,819 contracts. Of that volume, nearly 57% changed hands on the call side, according to data from WhatsTrading.com.

Peak call open interest in the July series resides at the 17 strike, with more than 87,800 contracts. This hefty accumulation of bullish bets could act as a layer of options-related resistance during the near term.

Wall Street is also smitten with the shares. INTC has earned 23 "buy" ratings, eight "holds," and three "sells." This configuration leaves the security vulnerable to potential downgrades should the security fail to live up to their heightened expectations.

Technically speaking, the equity has tacked on more than 16% since the start of 2009, but is down more than 1% in trading this morning. The stock has broken above short-term resistance at the 16.50 level and continues to rise along the support of its ascending 10-week moving average. The security has suffered only two weekly closes below this trendline since mid-March.

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