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 Jun 24, 2020 at 10:16 AM

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.


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