Huge blocks of calls trade today in Intel Corporation (INTC) as 2 times the average daily option volume in INTC traded within the first hour of the session. The biggest block was for nearly 35,000 of the INTC Feb 26 calls bought for $0.75. This trade required the trader to lay out over $2.6 million in premium. With stock currently trading around $26.35 in a 52 week range of $20.10-$26.37 these calls are in the money and trading around a 60 delta. With stock trading on a new 52 week high we see INTC setting up well on a chart as well.  The stock is trading well above the Ichimoku Cloud and the future cloud is sloping upward suggesting there is more room to the upside for INTC.

INTC is also set to report their most recent quarterly earnings on Thursday. The stock has rallied 4 times and sold off 4 times over the past 8 releases. With this much bullish order flow in INTC we believe that the stock is likely to head higher on earnings. We will be looking to get long INTC ahead of earning using options to set up a favorable risk to reward ratio. Order flow and the chart are both confirming the likeliness of more INTC upside.

Andrew Keene


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