Intel Corporation (NASDAQ:INTC) is down 1.4% at $34, after the company agreed to buy Altera Corporation (NASDAQ:ALTR) for $16.7 billion in cash -- confirming earlier speculation. Meanwhile, intraday options volume has popped to 1.5 times the expected amount.

Seeing possible buy-to-open activity is INTC's July 34 put. By purchasing these at-the-money contracts, speculators anticipate the shares will breach $34 by the close on Friday, July 17, when back-month options expire.

This pessimism is reflected by longer-term data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Specifically, INTC's 10-day put/call volume ratio of 1.25 ranks in the 84th percentile of its annual range. Along the same lines, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.32 outstrips 96% of comparable readings from the past year.

Technically speaking, however, Intel Corporation (NASDAQ:INTC) has been trending upward over the long term. Year-over-year, the shares have advanced 25%, and even today's dip has been contained by their 160-day moving average -- a trendline that served as resistance in early 2015. Should INTC reverse higher, an unwinding of bearish options positions could translate to upside.

Analysts are weighing in on coal concern Peabody Energy Corporation (NYSE:BTU), semiconductor specialist Ambarella Inc (NASDAQ:AMBA), and drugmaker aTyr Pharma Inc (NASDAQ:LIFE). Here's a quick roundup of today's brokerage notes on BTU, AMBA, and LIFE.

• BTU has earned a dreary spot on the Big Board, after Goldman Sachs initiated coverage on the stock with a "sell" rating and a $2 price target, citing concerns over domestic thermal coal demand. At last check, the security was down 6.2% at $3.16, and fresh off a record low of $3.15. Today's negative price action just echoes the withstanding trajectory of a security that's surrendered 80% of its value year-over-year. Peabody Energy Corporation could encounter a fresh wave of selling pressure, too, should any analysts follow in Goldman Sachs' footsteps. Currently, seven out of 17 brokerage firms maintain a "buy" or better rating on the equity, while the average 12-month price target of $7.10 stands at a 125% premium to BTU's present perch.


• Ahead of AMBA's turn in the earnings confessional tomorrow night, Deutsche Bank raised its price target on the stock to $80 from $64. The bullish brokerage note has sent the shares soaring to yet another record high; this time, with AMBA topping out at $93.86. Longer term, the stock has added 85% in 2015, and was last seen lingering near $93.73. In the options pits, speculators have shown an increasing preference for puts over calls among options set to expire in three months or less. Specifically, Ambarella Inc's Schaeffer's put/call open interest ratio (SOIR) has jumped to 1.10 from its May 18 reading of 0.94, and now ranks in the 66th percentile of its annual range.


• Wall Street newcomer LIFE received a bevy of bullish brokerage notes, and has moved 2.1% higher to $23.36 as a result. Both BMO and William Blair, for example, initiated coverage with an "outperform" rating and a $42 price target. Elsewhere, J.P. Morgan Securities started the stock with an "overweight" recommendation and a $44 target price, while Citigroup began coverage with a "buy" suggestion and a $32 price target. Since going public on May 7, aTyr Pharma Inc has tacked on more than 75%, and topped out at a post-IPO peak of $27.82 on May 21.

Ford Motor Company (NYSE:F) is set to report May auto sales tomorrow. Ahead of that release, the automaker's calls are changing hands at an accelerated clip. By the numbers, 24,000 contracts are on the tape, versus a typical intraday volume of 18,000.

Looking more closely, possible buy-to-open activity is detected at the weekly 6/5 15.50-strike call. These speculators are rolling the dice on F to topple $15.50 by week's end, when the series expires. In order to do so, the stock will need to overcome resistance at its descending 40-week moving average, currently located at $15.49.

Today's bias for long calls is unusual, relative to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Over the last 10 weeks, F has accrued a put/call volume ratio of 0.40, which registers in the 90th percentile of its annual range.

On the charts, F has added 1.6% this afternoon to trade at $15.41, but remains below its year-to-date breakeven mark of $15.50. This level -- along with the aforementioned trendline -- could put a quick stop to the stock's advance.

No matter what happens, short-term option buyers can rest easy knowing they paid relatively inexpensive prices for their bets. Ford Motor Company's (NYSE:F) Schaeffer's Volatility Index (SVI) of 18% ranks in the bottom one-fifth of all comparable readings taken in the last year.

Call buyers are jumping on GoPro Inc (NASDAQ:GPRO), after the company announced the Hero+LCD -- an entry-level touchscreen camera -- will be available for $299 on June 6 (in the U.S.). With GPRO in rally mode, calls are now crossing at almost twice the expected intraday rate, making up nine of the 10 most popular contracts.

Two contracts seeing the most action are the weekly 6/5 58- and 60-strike calls. All signs point to buy-to-open activity, as traders bet on the shares to eclipse the strikes by the close this Friday, when the contracts expire.

Call buying has been the go-to strategy in GPRO's option pits for some time now. The equity's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio sits at 3.35. This tells us over three calls have been bought to open for every put during the past 10 weeks.

It's been a solid few months on the charts for GoPro Inc (NASDAQ:GPRO), to say the least. Since touching a 2015 low of $37.13 on March 10, the shares have picked up over 59%, while outperforming the S&P 500 Index (SPX) by almost 35 percentage points in the past three months. GPRO is keeping that momentum with today's news, adding 6.6% to trade at $59.13, and on pace to end atop its 200-day moving average for the first time.

A number of big names are hitting notable highs thanks to some upbeat analyst attention, and eBay Inc (NASDAQ:EBAY) is no exception. The stock notched a record peak of $63.03 earlier, after KBW raised its price target to $70 from $65. The positive price action has sparked a rush of call activity in EBAY's options pits, with the contracts crossing at four times the average intraday pace, and a number of speculators calling for even higher highs by week's end.

Specifically, the security's weekly 6/5 63-strike call has received notable attention, and it seems safe to assume that new positions are being purchased here. By buying the calls to open, the goal is for EBAY to rally north of the strike by Friday's close, when the weekly series expires. Amid today's pop, delta on the call has more than doubled since last Friday's close, and is currently docked at 0.46.

Widening the sentiment scope reveals call buyers have been active in EBAY's options arena in recent months. In fact, the stock's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 3.23 sits just 3 percentage points from a 52-week peak.

Elsewhere, EBAY's Schaeffer's put/call open interest ratio (SOIR) of 0.46 ranks lower than 80% of all comparable readings taken in the past year. Simply stated, short-term speculators are more call-heavy than usual toward EBAY.

Technically speaking, EBAY has been charting a path steadily higher since bottoming at a nearly two-year low of $46.34 in mid-October, up 36%. What's more, the stock powered through previous resistance in the $61 area on Friday, and was last seen up 2.6% at $62.95. Off the charts, eBay Inc (NASDAQ:EBAY) said former Pimco exec Daniel Tarman will serve as the company's chief communications officer once the PayPal split is complete.

Skepticism has been running high in Puma Biotechnology Inc's (NYSE:PBYI) options pits for some time. The drugmaker's 10-day put/call volume ratio across the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) is 3.07 -- with long puts more than tripling calls. What's more, this ratio is perched just 8 percentage points from a 12-month high.

Echoing this skepticism is PBYI's Schaeffer's put/call open interest ratio (SOIR) of 1.80. Not only does this SOIR indicate short-term put open interest nearly doubles call open interest, it also sits in the 90th percentile of its annual range.

These bearish bettors are in luck today, as PBYI's taken a 10% tumble to trade at $175.64 -- and landed on the short-sale restricted list. The shares were also temporarily halted earlier. Potentially pressuring the stock was news that nearly 40% of patients treated with PBYI's breast cancer drug neratinib developed severe diarrhea.

This isn't the first time the cancer treatment has weighed on the shares. PBYI gapped sharply lower on May 14 following the results of another neratinib trial. With today's losses, though, Puma Biotechnology Inc (NYSE:PBYI) is now sitting 7.2% below its year-to-date breakeven mark. Off the charts, the company will hold its investor/analyst meeting this evening.

Rumors that activist investor Carl Icahn may be interested in taking a stake in LinkedIn Corp (NYSE:LNKD) have pushed the shares 3.1% higher today to $201.02. The stock is now on pace to close above its 20-day moving average for the first time since its bear gap from early last month. Elsewhere, call players have stepped up, with the contracts crossing at an accelerated intraday rate. 

LNKD's weekly 6/5 series is in high demand, making up eight of its 10 most popular strikes. One option that's noteworthy is the weekly 6/5 210-strike call, which it appears traders are buying to open. That means they're betting on the shares to gain at least 4.5% and topple $210 by week's end, when the options expire. 

This is just more of the same from LNKD's option traders. Over the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock has accumulated a call/put volume ratio of 1.88, which is only 9 percentage points from an annual high. 

Analysts, too, have made their bullish expectations clear. Of the 26 brokerage firms with coverage on the stock, 19 say it's a "buy" or better. Also, LinkedIn Corp's (NYSE:LNKD) consensus 12-month price target of $254.03 stands at a 26.4% premium to current levels. 

Analysts are weighing in today on data storage focus Western Digital Corp (NASDAQ:WDC), semiconductor concern Integrated Device Technology Inc (NASDAQ:IDTI), and footwear retailer DSW Inc. (NYSE:DSW). Here's a quick look at today's brokerage notes on WDC, IDTI, and DSW.

• A bullish note from Goldman Sachs has WDC 5% higher today at $99.06. Specifically, the brokerage firm raised its outlook on the stock to "buy" from "neutral" and lifted its price target to $122 from $106, saying the stock's current price doesn't fully account for the company's non-PC exabyte growth. Most brokerage firms share this bullish sentiment, with 15 of 19 calling Western Digital Corp a "buy" or better. This, despite the equity underperforming the S&P 500 Index (SPX) by more than 11 percentage points in the past three months.


• IDTI has added 3.3% to trade at $23.94 -- and earlier touched a nearly 13-year high of $24.15 -- after some positive analyst attention. For instance, Wedbush and Topeka Capital each raised their price targets on the stock, to $23 and $29, respectively. Integrated Device Technology Inc is now up 77% in the past 12 months, but short-term option traders are still more put-skewed than normal, according to its Schaeffer's put/call open interest ratio (SOIR). At 1.44, this reading is only 2 percentage points from an annual high.


• DSW has given back 2.8% today to trade at $34.17, after Goldman Sachs waxed pessimistic on the shares -- despite the company's encouraging first-quarter results. The brokerage firm removed the stock from its "America's Buy" list (as it also did to this more upscale retailer), cut its assessment to "neutral" from "buy," and reduced its price target to $37 from $44. After all that, DSW Inc. is now 8.4% below breakeven in 2015, and option traders are likely dissatisfied. The security's 50-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 17.43 is only 3 percentage points from an annual bullish peak.

A number of major FIFA sponsors have expressed disappointment with the organization in the wake of the recent bribery scandal and subsequent arrests. Visa Inc (NYSE:V) is one of the companies, saying it is expecting "swift and immediate steps" from FIFA, otherwise it will re-evaluate its support. Following the reports (and amid a broad-market decline), V has shed 0.5% to trade at $69.14 -- extending its recent retreat from record highs -- a move that option traders have been anticipating.

In fact, at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), V's 10-day put/call volume ratio of 1.18 ranks in the 83rd percentile of its annual range. In other words, puts have been bought to open over calls at a faster-than-usual clip in recent weeks.

Outside of the options pits, sentiment toward V is more mixed. Among the brokerage bunch, for example, 19 of 24 analysts maintain a "buy" or better rating, with not a single "sell" to be found. Meanwhile, the average 12-month price target of $74.40 represents a slim 7.6% premium to current trading levels -- but sits in territory yet to be charted.  Elsewhere, less than 3% of the stock's float is sold short, yet at V's average daily pace of trading, it would take more than a week to cover these shorted shares.

Technically speaking, Visa Inc (NYSE:V) has been making a series of higher highs in 2015, resulting in a year-to-date gain of 5.5%. What's more, the shares topped out at $70.69 -- their loftiest perch to date -- on May 15. As such, it's possible some of the recent put buying -- particularly at out-of-the-money strikes -- is a result of shareholders protecting paper profits against a pullback.

It seems as if FireEye Inc (NASDAQ:FEYE) can't be stopped. Today, the shares hit a new 52-week peak of $47.18, and were last seen up 4.6% at $47.1. Stoking the bullish bias is an upwardly revised offering -- which has some speculating once again about a potential takeover -- and possibly recent hacks at Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) and the IRS, all of which may be discussed at next Wednesday's analyst meeting. However, not everyone is convinced the stock can continue its run, with a number of option traders eyeing an end-of-week pullback.

Taking a quick step back, FEYE puts are trading at two times the average intraday pace today. The equity's weekly 5/29 46-strike put is seeing heavy action, and it appears eleventh-hour speculators are purchasing new positions here. Amid today's rally, delta on the now out-of-the-money put has moved to negative 0.29 from negative 0.72 at last night's close, signaling a decreased probability of an in-the-money finish at tomorrow's close, when the contracts expire. 

Widening the scope reveals put players have been more active than usual in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), FEYE's 50-day put/call volume ratio of 0.39 ranks in the 69th percentile of its annual range. While some of this put buying may be a result of shareholders protecting paper profits, skepticism toward FEYE is seen outside of the options pits, as well.

In fact, 11.6% of the stock's float is sold short, representing over four days' worth of pent-up buying demand, at FireEye Inc's (NASDAQ:FEYE) average daily pace of trading. Plus, more half of analysts covering the shares maintain a "hold" or worse recommendation. Should FEYE extend its trek in annual-high territory, an unwinding of the pessimism surrounding it could translate into additional gains.

Electric vehicle maker Tesla Motors Inc (NASDAQ:TSLA) is bucking the broad-market trend lower today, up 1.5% at $251.08. What's more, options traders are rolling the dice on even more very short-term upside for the stock.

TSLA calls have changed hands at a 30% mark-up to the security's average intraday pace, and options expiring after the close tomorrow make up the 10 most active strikes. Furthermore, the stock's 30-day at-the-money implied volatility has jumped 3.5% to 31.4%, but remains near an annual low. 

Digging deeper, it looks like eleventh-hour bulls are buying to open weekly 5/29 250-, 252.50-, and 255-strike calls -- the three most popular options thus far. By doing so, the speculators expect TSLA to be sitting north of the respective strikes by expiration tomorrow night. 

Since touching an annual low of $181.40 in late March, TSLA has advanced 38.4%. The shares are now on pace to end the month atop their 10-month moving average for the first time since November. As a result of the stock's ascent, though, its 14-day Relative Strength Index (RSI) is perched at 70 -- in overbought territory, suggesting a near-term breather could be on the horizon.

Meanwhile, short sellers have been hitting the bricks amid TSLA's advance. However, while short interest fell 7.9% during the most recent reporting period, these bearish bets still account for more than a quarter of TSLA's total available float -- representing more than a week's worth of pent-up buying demand, at the equity's average pace of trading. Should TSLA continue to muscle higher, a short squeeze could add fuel to the automaker's fire.

Off the charts, Tesla Motors Inc (NASDAQ:TSLA) traders don't seemed concerned about potential competition from Ford Motor Company (NYSE:F). Meanwhile, speculators are digesting partnerships with Southern Co (NYSE:SO) and Ireland-based Gaelectric, as well as the latest chapter in CEO Elon Musk's Hyperloop adventure.

Happy Monday! If you were waiting all weekend for a good Twitter discussion about whether AccuShares Spot CBOE VIX Fund Up Shares (VXUP) will morph from tracking CBOE Volatility Index (VIX) futures early in the "cycle" to tracking closer to VIX itself later in the cycle, well … you're in luck! 

@agwarner $VXUP and $VXDN will probably track mid term futures even across distribution dates. http://t.co/tHJOAoWYtz

— Eli Mintz (@VixCentral) May 29, 2015

I don't at all disagree. My only point is that it will also track VIX itself as it nears the distribution date, peaking at Day 0 (the 15th). Anyway, here's what Eli has to say in his piece: 

"… [Y]ou are probably asking yourself, what about the Distribution Date and its implications? After all, the Distribution Date of VXUP usually falls near but not on the expiration date of the future and how is this analysis of arbitrage involving futures whose life spans several Distribution Dates relevant? The crucial point to understand here is that the Regular Distribution is a non-event value-wise for a VXUP position just as a split or a dividend are for a position in a regular stock. A split in the value of a stock does not change the value of the position held. As for a dividend distribution, the price of the stock goes down by the dividend amount on the ex-dividend day but the value of the whole position consisting of stock plus a cash dividend remains the same. Say that you know that the next day a stock is going to go ex-dividend. You also know exactly what the dividend will be. If you buy at the close extra stock with your anticipated cash dividend, your stock position will remain the same." 

OK, that's all true. The distribution is a de facto dividend. If you buy VXUP "Distribution On" on the 15th, you are doing the same exact thing as if you buy it the next day at the same price as the day before, minus the accumulated distribution.  There's no value added or subtracted by the mere fact that they're paying the distribution.

But that's not really the issue. Rather, it's whether the imminence of the distribution causes VXUP to track VIX itself. Which brings us to Eli's next graph: 

"Holders of VXUP can do exactly that at the close of each Distribution Date. Because the rules of the Regular Distribution are fixed and known in advance, an investor can anticipate exactly how much cash he will receive (if at all) and purchase additional VXUP in that amount."

And that's my only real point. He anticipates that exact amount by knowing the distribution amount in the "bank," plus the move in that last day. And that last day move is entirely the move in VIX itself, as best I understand it. So, the move in VXUP on Day 0 should achieve maximum correlation with VIX itself. He goes on: 

"In this way, the Distribution Dates become non-issues in relation to arbitraging VXUP and the VIX futures (the only risk being lack of liquidity resulting in large bid-ask spreads)."

That's likely true, too. I would suggest the real issue is none of this is mutually exclusive. 

Or maybe that's the real non-issue. This is giving me a headache, and we'll have a better idea when we actually see it. Maybe VXUP gets huge someday and it starts dragging around VIX futures? I doubt it, but who knows?

Disclaimer: Mr. Warner's opinions expressed above do not necessarily represent the views of Schaeffer's Investment Research.