Market News

June 12, 2013  Wed 5:16 AM CT

Intel has enjoyed a nice run this quarter, and now the bulls are moving their positions higher and out in time.

optionMONSTER's Heat Seeker program shows that traders sold the June 26 calls yesterday and bought the July 27s. Blocks of 40,000 contracts in each traded for a net cost of $0.11.

Long calls lock in the price where the stock can be purchased, allowing them to track movements in the underlying share price. Rolling them from one month to the next keeps investors positioned to profit from gains while limiting the cost. (See our Education section)

INTC declined 1.2 percent to $24.71 yesterday. The chip maker has moved from the low $20s to the mid-$20s but remains below its recent highs.

Yesterday's roll accounted for the bulk of the option paper in INTC yesterday. Calls outpaced puts by 128,000 to 19,000.

Disclosure: I own INTC calls.

(A version of this post appeared on InsideOptions Pro yesterday.)
News Archives

Education & Strategy

Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

More education articles »