Noteworthy Tuesday Option Activity: TOST, INTC, QS

Intel (INTC) and QuantumScape (QS) are experiencing notably high options trading volumes today, with contracts representing 58.9% and 58% of their respective average daily stock trading volumes. This elevated activity is concentrated in long-dated call options expiring July 2025, specifically the $24 strike for INTC and the $8 strike for QS, indicating significant interest or strategic positioning for these equities over the medium term.

Analysis

Intel Corp. (INTC) and QuantumScape Corp. (QS) are exhibiting significant options market activity, with today's traded contract volumes representing 58.9% and 58.0% of their respective average daily share volumes. This elevated interest is not generalized but is heavily concentrated in specific long-dated call options. For Intel, notable volume was observed in the $24 strike call expiring July 11, 2025, with 38,280 contracts traded. Similarly, QuantumScape saw a surge in the $8 strike call for the same July 2025 expiration, with 23,120 contracts changing hands. The focus on these specific, distant expiration dates suggests that market participants are establishing significant positions based on a medium-term outlook for both equities, rather than engaging in short-term speculation. This activity indicates a potential belief in or hedging against substantial price movement for INTC above $24 and QS above $8 over the next year.

Key Decisions for Investors

• Investors should analyze potential catalysts for INTC and QS that could materialize before July 2025, as the concentrated call buying at the $24 and $8 strikes suggests a significant positioning for future upside.
• The high options volume relative to stock volume may signal forthcoming volatility in the underlying shares, warranting a review of risk management strategies for existing positions in both stocks.
• Given that high call volume can also stem from complex hedging strategies and not just bullish speculation, traders should seek confirmation from other fundamental or technical indicators before initiating new long positions based solely on this options flow data.