Intel (INTC) seller boosts near-term put volume

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Intel Corp. (NASDAQ: INTC ) received a downgrade from BMO Capital Markets ahead of the opening bell on Thursday, but the stock is trading in the green during morning trading. Options action on the tape suggests an investor is relying on support at the 19 level or is willing to buy the stock slightly below the current price.

The September 19 puts have traded nearly 6,000 times versus current open interest of 8,700 contracts. The earliest block of these near-the-money puts changed hands for 56 cents and the most recent block crossed the tape for 51 cents. Both of these prices were closer to the bid when the options changed hands. This options action suggests the investor collected premium up front to close long put positions at a slight loss or profit, depending on the initial premium of the bearish trade.

INTC shares gained 1%, or roughly 20 cents, to $19.62 as of 10:08 a.m. EDT. BMO downgraded the stock to "market perform" from "outperform." This downgrade occurred the day after Stifel Nicolaus decreased its price target on the stock to $32 from $34. INTC announced better-than-expected earnings of 51 cents per share on July 13, and the market does not expect the company's next report until October.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Options

Referenced Stocks: INTC

Karla Yeh

Karla Yeh

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