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Options Radar: Kate Spade & Co, Dendreon Corporation, and Intel

Reviewing notable options activity on Kate Spade & Co, Dendreon Corporation, and Intel Corporation

by 8/12/2014 11:35 AM
Stocks quoted in this article:

Option traders have taken a shine to clothier Kate Spade & Co (NYSE:KATE), biotech firm Dendreon Corporation (NASDAQ:DNDN), and tech concern Intel Corporation (NASDAQ:INTC). Here's a look at how speculators have been placing their bets on these three names today.

  • Kate Spade & Co (NYSE:KATE) has explored a nearly 13-point range spanning both sides of breakeven. After touching a new seven-year high of $42.87 in the wake of solid quarterly earnings and guidance, the stock performed an about-face, and is now down 18.6% at $31.42, earning it a place on the short-sale restricted list (SSR). Overall option volume is running at around 45 times the intraday average, with calls and puts trading near parity. It looks like bulls are betting on higher highs for KATE, with potential buy-to-open activity detected at the August 43 call -- the most active strike thus far.

  • Dendreon Corporation (NASDAQ:DNDN) has plummeted 34.4% to $1.39, and touched a 12-year low of $1.33, after the firm warned of a potential debt default. As such, the stock has landed on the SSR list, but some option traders are gambling on a rebound. Intraday option volume is running at 22 times the typical pace, and it appears some speculators are buying to open the August 1.50 call. Meanwhile, a few bears are cashing in their chips, selling to close their now in-the-money August 2 puts.

  • Finally, Intel Corporation (NASDAQ:INTC) is fractionally lower at $32.74, but remains 26.2% higher year-to-date. However, it looks like one options trader is rolling the dice on a long-term ceiling for INTC. Specifically, it appears the speculator bought to close a block of more than 44,000 October 36 calls, and rolled the position up and out, selling to open January 2015 37-strike calls. By writing the long-term calls to open, the trader expects INTC to remain south of $37 through January options expiration.

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