Unusual Options Activity: Intel (INTC)

Shares of chipmaker Intel (INTC) are down 44 percent over the past year, about three times worse than the slide in the S&P 500. One trader sees the stock continuing lower over the next two years.

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  • That’s based on the January 2025 $13.00 put. With 725 days until expiration, 10,004 contracts traded compared to a prior open interest of 312, for a 32-fold jump in volume on the trade. The buyer of the puts paid $0.60 to make the bearish bet.

    Shares currently go for just over $28, or more than twice the strike price of the options, and shares have a 52-week low of $24.59.

    However, any further weakness in the chip industry, or with Intel specifically, could lead to a move lower and a jump higher in these low-priced options.

    Action to take: Intel stock has turned lower in recent sessions. Interested investors can likely get shares under $25 in the coming months. The stock yields about 5.1 percent today, but patient buyers can get a higher starting yield.

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  • For traders, the 2025 puts have a long time to play out and they’re cheap. A quick downturn in the coming months could lead to high-double-digit returns or better, with plenty of time to exit the trade before expiration – or a turnaround in shares.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.