Put Players Target Intel Corporation (INTC) Amid Revenue Woes

Intel Corporation (INTC) downwardly revised its current-quarter sales outlook

by Karee Venema

Published on Mar 12, 2015 at 10:43 AM
Updated on Apr 20, 2015 at 5:32 PM

Just one day after popping on reports of a potential partnership with Apple Inc. (NASDAQ:AAPL), Intel Corporation (NASDAQ:INTC) has reversed course following a downwardly revised first-quarter revenue forecast. In the options pits, put volume has soared to five times what's typically seen at this point in the day, with a number of speculators betting on INTC to plunge to levels not seen since mid-October over the next two weeks.

Specifically, INTC's weekly 3/27 30-strike put has received notable attention, and all signs suggest buy-to-open activity. By initiating the long puts, speculators expect the stock to breach the round-number $30 mark by the close on Friday, March 27 -- when the series expires. As touched upon, INTC hasn't traded south of this level on an intraday basis since Oct. 15. What's more, the shares haven't closed below $30 since June 18, and as such, delta on the put is docked at negative 0.26.

From a wider sentiment perspective, today's accelerated put activity is just more of the same. The stock's 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) put/call volume ratio of 1.26 ranks in the 86th annual percentile. Plus, the equity's Schaeffer's put/call open interest ratio (SOIR) of 1.03 rests higher than 60% of similar readings taken in the past year, meaning short-term speculators are more put-heavy than usual.

Technically speaking, Intel Corporation (NASDAQ:INTC) has turned in a strong performance over the long term, boasting a 26.4% year-over-year gain. Additionally, although the equity is off 3.9% today to trade at $31.06, it appears the downside is being contained by INTC's 320-day moving average -- a trendline that has ushered the equity higher since October 2013.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Top Lithium Play of 2020
Click to continue to advertiser's site.
First Week in April Provides More Coronavirus-Related Volatility
A slew of coronavirus-related news sent markets on another weekly roller coaster ride
Netflix Stock Heading into Historically Bullish Quarter
NFLX's 10-day moving average has stepped up as support lately
The Top Lithium Play of 2020
Click to continue to advertiser's site.