Most Active Options Update: Intel Corporation (INTC)

Option traders expect short-term losses to continue for Intel Corporation


Published on Nov 7, 2014 at 1:30 PM
Updated on Apr 20, 2015 at 5:32 PM

The 20 stocks listed in the table below have attracted the highest total options volume during the past 10 trading days. Names highlighted are new to the list since the last time the study was run, and data is courtesy of Schaeffer's Senior Quantitative Analyst Rocky White. One name of notable interest today is Intel Corporation (NASDAQ:INTC), where calls are crossing at a much faster rate than puts .

Most Active Options Table

Diving right in, Intel Corporation has seen 29,000 calls exchanged so far, versus 18,000 puts. The stock's 30-day at-the-money implied volatility (IV) has edged 0.7% higher to 25%, as well, suggesting elevated demand for short-term strikes. A closer look reveals eight of the 10 most active INTC options expire within the next two weeks.

While the November 33 call occupies the top spot, IV is lower and open interest is sufficient enough to cover the volume, so positions may be closing. However, the second most active option -- the weekly 11/14 34-strike put -- is seeing opening activity, as IV is rising and volume outstrips open interest. Moreover, 95% of the volume here has traded at the ask price, hinting at buyer-driven activity.

Today's weekly put buyers expect INTC to keep descending below $34 by next Friday's close, when the 11/14 series expires. The shares are off 1.2% this afternoon at $33.43, meaning the options are currently in the money. However, in order for the traders to profit at expiration, the stock will need to settle below $33.31 (strike less the volume weighted average price of $0.69) one week from today.

On the charts, Intel Corporation (NASDAQ:INTC) is currently facing pressure from its descending 10-week moving average, located at $33.67. Also, the stock is testing support at its 20-week trendline, at $33.42.

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