Intel Options Volume Pick Up as Stock Rally Unleases Bearish Positions
$Intel(INTC.US$'s ally to the highest since April unleased bearish positions on the stock, spurring heavy optionstrading for the chipmaker.
On Monday, as the stock sealed a five-day gain of more than 10%, the number of shares that were sold short more than doubled to 9.69 million from a week earlier, exchange data tracked by moomoo showed. That's almost 12% of the total volume.
Investors and speculators are shorting the stock that's seeking to climb out of the rut. Shares tanked 32% in the past year while the $PHLX Semiconductor Index(.SOX.US$ soared more than 60%. Intel lagged its peers as its financial results disappointed the market while many of its outperforming rivals reported earnings that blew past analysts' estimates.
About 414,310 Intel options were already traded by noon time in New York, landing them in the fifth slot for the most-traded stock options, behind $NVIDIA(NVDA.US$, $Tesla(TSLA.US$, $Apple(AAPL.US$and $Advanced Micro Devices(AMD.US$, data compiled by moomoo showed. (To see the rankings, click here.)
More than half of the volume was in contracts expiring this Friday and the next, with the heaviest concentration on call options that give the holder the right to buy Intel at $35 a share.
Volume is picking up as the stock fluctuated, triggering wilder price swings in Intel's options market. The $35 call options swung from a gain of 147% just minutes after the trading opened, to a loss of about 17% at 12:10 p.m. in New York.
While 10 of the 15 technical indicators tracked by moomoo are flashing warnings signals that the stock could be overbought and the trend may turn bearish, analysts at Melius Research are predicting the slump over the past 12 months could soon reverse.
They see Intel repeating its ascent in the second of 2023 that point to a 50%, Barron's reported, citing the Melius analysts' note.
For now, Intel is seeing fund outflows exceeding inflows by $16.93 million. That would trim this month's net inflow that reached $220.5 million so far, capital trend data compiled by moomoo showed.
Share your thoughts on Intel below and the short positions on the stock?
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors readCharacteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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