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INTC Options Pop on Heels of Stock's Recent Rally

The stock sports well-priced premiums at the moment, too

Deputy Editor
Mar 29, 2021 at 3:27 PM
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The shares of semiconductor name Intel Corporation (NASDAQ:INTC) are currently down 1.1% to trade at $64.16 -- having cooled off a bit from their recent March 24 annual high of $67.44. However, support at the 40-day moving average swooped in to catch its recent pullback, and the equity is up around 29% since the start of the year. Meanwhile, this positive price action has attracted the attention of options traders. 

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In fact, INTC has found itself on Schaeffer's Senior Quantitative Analyst Rocky White's list of stocks that have attracted the highest weekly options volume within the past two weeks, with new names to the list highlighted in yellow. According to this data, 348,178 calls and 128,932 puts were exchanged over this two-week period. The most popular contract during this time was the March 65 call. 

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Today, INTC is seeing a similar preference for calls. So far, 50,000 calls and 31,000 puts have crossed the tape. The weekly 4/1 66-strike call -- where new positions are being opened -- is getting the most action today, while the May 65 call is also seeing notable options activity. Buyers of the latter are banking on more gains for INTC in the next month.

Now could be a good time to weigh in on Intel stock's with options, too. The stock is seeing attractively priced premiums at the moment, per the security's Schaeffer's Volatility Index (SVI) of 30%, which sits in the 12th percentile of its annual range.

Lastly, analysts are leaning bearish on INTC. Of the 29 in coverage, 19 carry a tepid "hold" or worse rating. Meanwhile, the 12-month consensus price target of $65.60 is roughly in line with current levels. 

 

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