Intel Sees Millions of Dollars in Inflows, Bullish Option Positions as Chip Stocks Rise
$Intel (INTC.US)$ bulls are pouring millions into the lagging chipmaker even as technical indicators flash warning signs that the rally could be losing steam.
Inflows outpaced outflows by $139.7 million as of 3:24 p.m. on Tuesday. That would be the straight net inflow into Intel. The bulls are also taking positions in put options that could become profitable if the stock price climbs above $30 over the next two years.
Intel shares advanced for a fifth straight session, rising 3.4% to $23.57 as of 3:25 p.m. Tuesday, on pace to become the day's best performer on the $Dow Jones Industrial Average (.DJI.US)$. The chipmaker's gains outpaced the 2.1% rise in $NVIDIA (NVDA.US)$, and 2.7% advance for $Advanced Micro Devices (AMD.US)$.
Intel, which has lost 53% of its value over the past year is playing catch up with its peers. Over the weekend, Bloomberg reported that $Apollo Global Management (APO.US)$ has offered as much as $5 billion in equity-like investment in Intel. That came just days after the Wall Street Journal reported that San Diego-based chipmaker $Qualcomm (QCOM.US)$ approached Intel about a potential takeover.
At 1:18:02 p.m., a bullish multi-leg trade was posted. One of the legs involved an active seller collecting a $1.16 million premium for offering put options that give the holder the right to sell 125,000 Intel shares at $30 by Dec. 18, 2026. At that exact time, another bullish transaction was posted with the active seller collecting an $839,500 premium for selling put options with the same strike price but with a different expiration date, March 21. A third leg of the trade was a bearish transaction for $18 put options expiring Sept. 19, 2025.
With just over an hour left into the trading, Intel has already seen 565,210 options changing hands, landing the chipmaker in the top 4 most active stock options, behind $NVIDIA (NVDA.US)$, $Tesla (TSLA.US)$ and $Apple (AAPL.US)$. The heaviest Intel options volume is on call options that give the holders the right to buy the stock at $24 in two days.
Tuesday's rally took the share price less than 50 cents below that $24 strike price. Amid the gains, 10 of 15 technical indicators tracked by moomoo are showing the stock may now be overbought and the trend could soon turn bearish.
Reports of a potential takeover offer by Qualcomm and capital infusion from Apollo are helping fuel optimism on the outlook of the chipmaker that recently saw its credit rating downgraded to one notch closer to junk. Intel's debt load has risen above $50 billion amid weakening financial results. That debt is bigger than $Meta Platforms (META.US)$'s $38 billion, $Alphabet-A (GOOGL.US)$'s $28 billion, $Dell Technologies (DELL.US)$'s $26 billion and Nvidia's $11 billion, according to Bloomberg Intelligence.
Share your thoughts on Intel's future in the comments section. If you have a price forecast for the stock, please vote below.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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Angelica Torres :
RDK79 : Guess it’s the quarterly ‘pump’ season.
RDK79 RDK79 : - buy out rumor…
- ‘millions’ incoming revenue…
- next… let’s try AI rumors again…
Goal: get this puppy back up again so shorters can do their quarterly swoop, after quarterly report show continued performance
Laine Ford : like that stock too
Andrew Figueroa : on word, "chips."
103677010 : noted
Hanboy73 : Am a big fan of this stock at current levels. The risk reward is compelling, seldom does one get a chance of making 20 pct or more on this large cap stock.
youreatowel : It’s going to 40 tomorrow
Laine Ford : all good stock
BLACKLIST00 : Thank you guys
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