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Intel Extreme Unusual Put Activity - What's up?
Zack found extremely Intel (INTC) Unusual Put Option Activity ahead of the annual meeting on May 12th
Recently Intel (INTC) has been showing a relatively resilient price action when compared to broader index performance. Intel is hosting it’s annual meeting next week - where matters such as the restructuring of the executive compensation package should be approved by shareholders.
Last week Intel presented its quarterly earnings report with an overall beat on Revenue & EPS but with an underwhelming guidance - the stock dropped almost 6 % in After Hours Trading. Fast forward one week and news that the CEO & the new CFO bought 5.500 shares in the beginning of May 2022.
Besides the annual meeting, other news are set to come out in the short term - the spinoff of Mobileye and in particular the release of its Arc Alchemist discreet graphics cards to finally compete with the two major GPU-makers, Nvidia and AMD. The particular info about the pricing of this cards has been so far withheld by Intel - and the launch has been delayed several times.
However, today, some leaks are already pointing to expected release dates and MSRP. Which might give investors an idea of just how much the new ARC line-up will do against the likes of NVDA & AMD.
Interestingly enough, for a company where Unusual Options activity has been relatively muted over the past months, we now captured two extreme trades in Intel. The Jun16 42.5 P & May27 45 P with a combined Volume of over 27K contracts traded above or at the ask while presenting relatively high Vol to OI (~28x & ~26x Vol/OI respectively).
There is a good chance that these contracts might be part of a synthetic trade considering the amount of stock bought at the time the 45 Put traded. However, one thing we should expect, substantial volatility incoming.
At the beginning of April, specifically the 12th of April, we captured extreme unusual put option activity in Netflix. In particular we called out the NFLX May20 250 P on our Zack Finds discord.
Fast forward a couple of weeks and this contract is now sitting on a 2.2k % return on a 1.2M $ investment.
It will be interesting to see how INTC will play out over the next couple of weeks! Subscribe to our newsletter for an update or consider creating a free account at ZackFinds.com.