Huge bearish strategy is targeting Intel
Chris McKhann | [email protected]
optionMONSTER systems show that a trader bought 14,000 July 18 puts for the ask price of $0.16 against open interest of 20,509. At the same time, he or she sold 42,000 July 16 puts for the bid price of $0.04 in volume far above open interest of under 2,000, so that was a new position.
The trader could be rolling a short puts to a lower strike while greatly increasing the size of the position, but it is far more likely that this is a bearish ratio spread. The latter would take a maximum profit if INTC is down around $16 by expiration in mid-July. (See our Education section for more on vertical spreads.)
INTC rose 3.13 percent to $21.75 yesterday. The chip giant's shares were down at a 52-week low near $19 in November but are back near resistance around $22 that has been in place since early October.
More than 353,000 INTC options traded in the session, compared to a daily average of 63,000 in the last month.