Intel's Share Slump Spurs Heaviest Trading in $41 Puts Expiring Friday

Intel's slump to the lowest since December is fueling the biggest volume since February in put options that give the holder the right to sell the stock at $41 by the end of this week.

Almost 18,000 of the $41 put options expiring on Friday changed hands just less than halfway through the trading day, making them the most-active options tied to Intel's stock according to data compiled by moomoo. That's almost seven times the latest open interest data on those put options.

Intel shares sank more than 6% after the company said its foundry business posted an operating loss of almost $7 billion in 2023, widening from $5.17 billion a year earlier, according to the company's filing with the Securities and Exchange Commission Tuesday. Revenue for that segment shrank to $18.9 billion, from $27.5 billion a year earlier, the document showed.

In a press release, Intel said yesterday it expects the foundry business's operating losses to peak this year and achieve break-even midway between now and the end of 2030, when it aims to post operating margins post 40% adjusted gross margins and 30% adjusted operating margins.

The price of the $41 puts climbed more than 700% to about 51 cents a share. The heavy volume could include those who previously wrote the options and are now buying them back before they expire in two days. Another group of buyers could be those seeking further protection, should the stock fall much deeper below that strike price. And then there are speculators hoping to gain from the price swings.

Amid Wednesday's sell-off, more than half of the one-day technical indicators tracked by moomoo are now signaling that the stock may now be oversold, and the trend could be turning bullish.

Do you agree with the six indicators that are showing Intel could be trending bullish, or do you belong to the camp that sees more losses for the stock?