Bears refuse to loosen their grip on Intel
Chris McKhann | firstname.lastname@example.org
optionMONSTER's Depth Charge tracking system detected the purchase of 21,892 July 29 puts for $2.15 and the sale of an equal number of June 29 puts for $1.92. Volume was below open interest in the June strike but not in July, which indicates that an existing position was rolled forward by one month. It is the largest trade in any single-name stock so far today.
The transaction occurred because today is expiration Friday, so the June puts would be exercised at the close and converted into a short sale against the chip maker. Adjusting to the July contracts prevented that from happening.
The net result is that the trader remains exposed to downside in the name but has limited risk, unlike being naked short stock. In return, the adjustment cost a net $0.08.
INTC is up 0.44 percent to $27.10 in morning trading. It peaked around $29 early last month, then retreated to around $25 by early June and has been rebounding since. The next earnings report is scheduled for after the bell on July 17.
Puts outnumber calls by about 3 to 1 in the stock so far today.