Options Market Statistics: Intel Shares Drop and Options Pop After Revealing $7 Billion Operating Loss for Foundry Business

Options Newsman wrote a column · Apr 4, 2024 08:49

News Highlights

$Intel (INTC.US)$ shares fell by 8.22%, closing at $40.33. Its options trading volume was 0.53 million. Call contracts account for 52.1% of the total trading volume. The most traded calls are contracts of $45 strike price that expire on Apr. 5th. The total volume reaches 11,646 with an open interest of 24,023. The most traded puts are contracts of a $44 strike price that expires on Apr. 5th; the volume is 8,453 contracts with an open interest of 4,137.

On Tuesday, Intel reported that its foundry business recorded sales of $18.9 billion in 2023, with an operating loss of $7 billion. The loss widened from $5.2 billion in 2022, indicating a further deterioration in Intel's foundry business performance last year. Intel CEO Pat Gelsinger stated that 2024 would be the worst year for the company's chip manufacturing business, with an expected return to operating profit not until around 2027. This setback has also dealt a blow to Intel's ambitions to challenge $Taiwan Semiconductor (TSM.US)$'s chip manufacturing position.

$Micron Technology (MU.US)$ shares rose by 4.29%, closing at $128.01. Its options trading volume was 0.44 million. Call contracts account for 74.5% of the total trading volume. The most traded calls are contracts of $130 strike price that expire on Apr. 5th. The total volume reaches 42,732 with an open interest of 3,298.

Micron Technology, a veteran memory chip specialist, was one of the clear winners in the tech sector on Wednesday, , despite much of its production being located in Taiwan, which had been hit by a powerful earthquake the day before. The company quickly reassured business partners and investors that all employees were accounted for and safe.

Besides, Mizuho analyst Jordan Klein has identified Micron as one of his top picks in the chip segment on Wednesday. Klein is optimistic about the sector and has noted that "semi investors tend to favor signs of a trough or bottom, and this is expected to occur in 2024.

Options Market Statistics: Intel Shares Drop and Options Pop After Revealing $7 Billion Operating Loss for Foundry Business

Unusual Stock Options Activity

Some notable call activity is being seen in $Aurora Cannabis (ACB.US)$, which is primarily being driven by activity on the April 5th call. Volume on this contract is 15,574 versus open interest of 110.

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Daily Active Index & Sector ETF Options

Source: Barchart, Unusual Whales, Barron's, The Motley Fool

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