Management Shake-Up Has Intel Corporation (INTC) Skeptics On Edge

Intel Corporation (INTC) is bouncing on a number of leadership changes

by Alex Eppstein

Published on Jul 2, 2015 at 2:47 PM
Updated on Jun 24, 2020 at 10:16 AM

Intel Corporation (NASDAQ:INTC) is 1.3% higher this afternoon at $30.58, amid a raft of changes to the company's senior leadership. Likely the most notable move is the departure of President Renee James, who will leave to pursue "an external CEO role."

Option bears can't be happy about the bounce. During the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open 1.37 puts for every call -- a ratio that checks in higher than 83% of readings taken in the last year. Echoing this, INTC's Schaeffer's put/call open interest ratio (SOIR) of 1.35 ranks in the put-skewed 94th annual percentile.

Digging deeper, a lofty accumulation of front-month put open interest resides at the underfoot July 30 strike, where more than 35,300 contracts are present. According to data from the ISE, CBOE, and PHLX, nearly 10,000 long positions have been opened here since early April. INTC could benefit from options-related support at this round-number strike, as the hedges related to these bets unwind ahead of expiration.

Short sellers may be forced to hit the exits, as well, should Intel Corporation (NASDAQ:INTC) extend its momentum. More than 128 million shares are currently sold short, representing about four days' worth of pent-up buying activity, at typical volumes.

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