Intel Pre-Earnings Options Analysis (INTC)

Posted in Options 
January 12th, 2011

Intel Corporation (NASDAQ: INTC) is due with earnings Thursday after the close and we could not help but notice two key issues around the options trading in Intel.  First was that the volatility is much lower and the options market is not expecting a huge price move from earnings.  Second would be that the bias remains much more skewed to a bullish bias.

The CALL options trading was far more active with more than 85,000 of the JAN11 CALLS traded versus less than 40,000 of the JAN11 PUTS traded.

Shares closed up 1.2% at $21.30 Wednesday and the 52-week trading range is $17.60 to $24.37. The bias is bullish going into earnings as far as the options are concerned and frankly the volatility here loos lower than normal as we’d assign a mere $0.50 to $0.60 expected move based upon the closing price of the closest PUTS and CALLS.

Stay tuned, maybe those figures and expectations will widen out a tad on Thursday since that is the actual earnings date.


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