Chipmaker Intel (INTC) has struggled this year, with shares dropping over 61% as the company has failed to turn around its business. One trader sees shares falling further over the next two years.
That’s based on the January 15, 2027 $8 puts. With 750 days until expiration, 6,276 contracts traded compared to a prior open interest of 292, for a 36-fold rise in volume on the trade. The buyer of the puts paid $0.49 to make the bearish bet.
Intel shares recently traded for about $19.50, so the stock would need to decline by $11.50, or about another 60% downside, for the option to move in-the-money. That would require Intel breaking significantly lower, as the stock trades close to its 52-week low of $51.28.
Intel’s earnings have been declining for years as it has lost market share and lagged in AI chip development. Revenues are down 6% over the past year.
Action to take: With shares in a downtrend and near 52-week lows, investors should shy away for now. Intel shares could see a pop higher on a buyout offer, but the stock could decline further in the meantime. Intel does pay a 2.2% dividend at current prices, but that may not be enough to offset a further decline in shares.
For traders, the January 2027 $8 puts are well priced for a further big decline at some point over the next two years. Traders could likely see mid-double-digit returns by expiration given how long the option has until expiration.
