Options Traders Target Intel Stock's Rebound

Intel (INTC) has experienced a significant rebound since early August, with its 320-day moving average now acting as support, contributing to a 21% year-to-date gain. This recovery has coincided with a surge in options trading activity, positioning INTC as a top-ranked equity by volume over the past two weeks, heavily skewed towards call options (over 5.6 million calls vs. 1.9 million puts in the last 10 sessions). Notably, the August 25 and weekly 8/22 25-strike calls are popular, with new positions being opened, while the stock's Schaeffer's Volatility Index at 54% (24th percentile) indicates low implied volatility expectations, suggesting options traders are pricing in potential upside with limited perceived risk.

Analysis

Intel Corp (INTC) is exhibiting strong bullish signals from the derivatives market following a technical rebound. After a post-earnings decline, the stock has recovered since early August, with its 320-day moving average now acting as a critical support level, contributing to a 21% year-to-date gain. This price action has been met with a significant surge in options activity, making INTC one of the most traded names over the past two weeks. The flow is heavily skewed towards bullish bets, with 5.68 million calls exchanged versus 1.91 million puts in the last ten sessions, indicating strong conviction for upside. Traders appear to be targeting the $25 level, as evidenced by high volume in the August 25 and weekly 8/22 25-strike calls, where new positions are reportedly being bought to open. Critically, this heightened bullish sentiment is occurring in a low implied volatility environment; the stock's Schaeffer's Volatility Index (SVI) of 54% ranks in just the 24th percentile of its annual range, suggesting that options are relatively inexpensive and the market is not pricing in significant near-term price swings.

Key Decisions for Investors

• Given the substantial bullish positioning in the options market, with a call-to-put volume ratio of nearly 3-to-1, investors may interpret this as a strong signal of potential near-term price momentum towards the $25 strike price.
• The low implied volatility, reflected by the SVI in its 24th percentile, suggests that call options are attractively priced, offering a potentially capital-efficient strategy for those looking to express a bullish view on INTC.
• Investors should closely monitor the 320-day moving average as a key technical support level; a sustained position above this line would reinforce the current bullish thesis, while a breach could signal a reversal of recent positive sentiment.