Intel Corporation (INTC) is a designer and manufacturer of microprocessors and chipsets. The company’s stock is currently trading around $25.13 in a 52 week range of $20.75-$27.12. The stock has been underperforming the market this year with shares falling just over 3.2% year to date. Despite this relative weakness we have seen some very large bullish bets being made on INTC during today’s trading session. Earlier in the session a trader bought 12,362 INTC Oct 30 Calls for $0.24. Over 26,000 contracts have now traded on that line against open interest of only 3,800. INTC is currently trading in neutral territory according to the Ichimoku Cloud but it appears like it could be ready to test the top of the cloud near $25.25. This trader is likely anticipation this breakout and these calls should be profitable if INTC breaks out from the cloud. With such a low level of premium involved in this trade we believe it sets up well on a reward to risk basis.
Trade: Buying the INTC Oct 30 calls for $0.25
Risk: $25 per 1 lot
Reward: Unlimited
Breakeven: $30.25