tradeMONSTER: Trade free for 90 days

Options Trading News

April 10, 2013  Wed 4:45 AM CT

INTC: SEE CHART GET CHAIN FIND STRATEGIES
Intel jumped yesterday but is facing what appears to be a large bearish position.

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. 
Share this article with your friends


Related Stories

INTC

What's behind put buying in Intel

December 5, 2014

The chip maker reached its highest level in nearly 14 years today, but one large trader is positioning for a possible pullback by spring.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Archived Webinar

The Art of Trading: Forgiving the Spread

Education & Strategy

Know thy Greeks!

One of the most important roles played by the Option Pricing Model is the calculation of an important family of...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER