Intel reports third-quarter earnings after the close on Halloween tomorrow
Intel Corp (NASDAQ:INTC) has fallen from grace so suddenly that semiconductor suitors have been circling. Last seen trading at $22.46, the chipmaker and former tech titan reports third-quarter earnings after the market closes tomorrow, Oct. 31. To avoid a Halloween scare, INTC must show serious inroads with artificial intelligence (AI) to buck a dire post-earnings trend.
Intel stock has developed a history recently of sharp post-earnings reactions to the downside. The shares gapped 26.1% lower in early August, and have not finished higher after earnings during any of the company's quarterly reports this year. For tomorrow's trading, the options market is pricing in a 14.8% post-earnings move, comparatively larger than the average 10.5% post-earnings move over the past two years.
INTC is down 55.2% in 2024, with its 80-day moving average keeping a lid on recent consolidation around $22. Options traders are loading up on puts. On the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), INTC's 10-day put/call volume ratio of 1.78 ranks in 100th percentile of its annual range, indicating the rate of call buying is at 12-month highs.
Options traders looking to bet on Intel's next leg lower will have to pay up, though. INTC's 30-day at-the-money implied volatility of 68.6% ranks in the 100th annual percentile, indicating near-term put options are pricing in higher volatility expectations than their call counterparts at the moment.