Credit: Shutterstock photoSemiconductors have been strong recently, and yesterday the bulls piled into industry leader Intel.
optionMONSTER's Heat Seeker system detected the purchase of more than 43,000 October 30 calls in the chip giant, most of which priced for $0.22 to $0.25. Volume was more than 11 times the previous open interest at the strike, indicating that new money was put to work.
These long calls lock in the price where shares can be purchased, letting investors cheaply position for a move higher without necessarily buying the stock. That way they limit their risk but also are assured that won't miss a rally. (See our Education section)
INTC rose 0.81 percent to $25.02 yesterday. The stock peaked above $27 in January, dropped on a disappointing quarterly report, and traded as low as $23.50 by early February. It spent more than a month in a tight range but has been ramping higher in the last week.
Total option volume in the name yesterday was quadruple its daily average, with calls outnumbering puts by almost 9 to 1.
Other chip companies such as Qualcomm, Cypress Semiconductor, and Lam Research have also seen bullish activity in recent sessions.
(A version of this post appeared on InsideOptions Pro yesterday.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
