Intel (INTC) is seeing a flurry of activity Wednesday morning. The stock is down amid weakness in the broader market and cautious commentary from a Raymond James analyst on CNBC. INTC is off $0.02 to $21.73. Meanwhile, calls on the stock are seeing brisk trading, being led by upside June 23 and April 22 call buyers.
Total volume in Intel in the first 30 minutes Wednesday is about 37,000 calls and 3,700 puts, a ratio of ten-to-one. The top trade is a 16,000-contract block of June 23 calls for $0.26 per contract on the all-electronic International Securities Exchange. A customer bought, to open, according to data from the ISE. More than 27,000 contracts now traded. April 22 and 23 calls are the next most actives in INTC this morning.
This morning options flow in Intel has a lot of conviction and the stock is coming off the day's lows. Earnings are due out April 16th and the stock has lagged the market during the recent rally. In fact, INTC is at the same levels today as in mid-November. Now, the stock seems positioned to outperform during the next cycle and the aforementioned June 23 calls for $0.25 per contract seem to make sense as a relatively "cheap" way to play for a move higher over the next three months.
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