Huge, Unusual Put and Call Option Volume in Intel - Investors Bullish as INTC Drops

A Barchart report today shows unusually large volume in out-of-the-money puts and calls in Intel Corp. (INTC) . It may indicate that investors are still bullish on INTC despite the stock's recent weakness.

INTC is down about 3.0% in midday trading today at $87.42 . This is close to its 3-month trough price of $81.88 on July 29. As a result, it has spurred huge volume in out-of-the-money puts and calls.

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Investors may be playing a paired trade today using puts and calls, believing that INTC is undervalued. Let's look at that play.

The Barchart Unusual Stock Options Activity Report today shows that over 11,000 put contracts traded at the $65.00 strike price expiring on October 2 (39 days to expiry). That strike price is over 25% below today's price.

Moreover, this volume is over 61 times the prior number of put contracts outstanding. It seems likely that the investors who initiated this trade are shorting the puts to collect the income.