Notable Tuesday Option Activity: MCD, MS, INTC

Morgan Stanley (MS) and Intel Corp (INTC) are experiencing notably high options trading volumes today, with MS seeing 22,700 contracts, representing 45.3% of its average daily trading volume, and INTC recording 404,166 contracts, or 45.2% of its ADTV. This elevated activity is particularly concentrated in specific put options: the MS $135 strike expiring July 03, 2025, and the INTC $22 strike expiring June 27, 2025, suggesting significant hedging or potential bearish positioning around these levels.

Analysis

Morgan Stanley (MS) and Intel Corp (INTC) are experiencing significant options market activity, with volumes representing 45.3% and 45.2% of their respective average daily share volumes. This activity is not broad-based but is highly concentrated in specific, long-dated put options. For Morgan Stanley, a notable volume of 2,124 contracts traded on the $135 strike put expiring in July 2025. Similarly, Intel saw substantial volume of 17,514 contracts on its $22 strike put expiring in June 2025. The concentration in these particular out-of-the-money puts suggests that market participants are either establishing significant hedges against potential medium-to-long-term price declines below these strike levels or are making speculative bearish wagers. The data points to a clear investor focus on downside risk at these specific price points for both financial and technology sector bellwethers, establishing $135 for MS and $22 for INTC as key levels of interest for market positioning through mid-2025.

Key Decisions for Investors

• Investors should monitor the $135 price level for Morgan Stanley and the $22 level for Intel, as the significant put option volume at these strikes indicates they are key areas of perceived downside risk or support.
• Current long holders of MS and INTC may consider this elevated put buying as a signal to review their own risk management and potentially implement hedging strategies against medium-term volatility.