Extreme Call Activity on Intel Before Earnings

Open interest among contracts expiring within three months is extremely call-heavy

by Josh Selway

Published on Jan 24, 2019 at 2:07 PM
Updated on Jan 24, 2019 at 2:07 PM

Intel Corporation (NASDAQ:INTC) call volume is running in the 99th annual percentile, while almost tripling the number of puts traded today. The February 52.50 call -- home to peak open interest -- is most popular today, followed by the March 52.50 call.

This call preference is part of a longer-term trend on INTC, which has a Schaeffer's put/call open interest ratio (SOIR) at 0.48, in the lowest percentile of its annual range. In other words, short-term options traders are much more call-skewed than normal.

All this comes as the chipmaker prepares for its earnings release later today. On the whole, the options market is pricing in a 6.7% swing for the shares in tomorrow's trading. The stock was last seen trading up 2.9% at $49.34, meaning a move of this magnitude to the upside would put Intel just above $52.50, territory not seen since a July bear gap. To the downside, the equity would be trading around $46.

As for analyst sentiment on the blue chip, most brokerage firms are actually skeptical, with 15 of 29 handing out "hold" or worse recommendations, This setup leaves the door open for a round of bull notes in the case of an impressive turn in the earnings spotlight. Last quarter, INTC rose 3.1% the day after earnings.


a schaeffer's exclusive

5 NEW STOCK PICKS

We're celebrating 38 years with this FREE insider report!


 
 

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


What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.
GDP, Consumer Spending Data in Post-Fed Spotlight
Next week will feature the final second-quarter GDP and fresh housing market data
Oversold Pot Stock Catches a Lift
PRVB stock is eyeing its lowest close in months, while IGC stock is set for a big win
What's Next for the American Wealth Gap
Porter Stansberry is predicting a major change in the American economic system.