Option Focus | Intel Sees $4.2 Million Call Sale at $120 Capping Upside While $2.65 Million Bet on $180 Calls Signals Long-Term Bullish Conviction

Option Witch
Oct 06

Intel closed at USD 116.19, down 2.63 percent.

Large options activity highlighted opposing views on Intel’s long-term trajectory. A single call sale at the $120 strike generated $4.20 million in premium, suggesting a trader expects upside to remain capped. Meanwhile, a $2.65 million purchase of far out-of-the-money $180 calls revealed strong long-term bullish conviction. Overall flow leaned moderately bullish, with repeated put selling and selective call buying indicating investors willing to own downside risk rather than brace for a major decline.

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Options Indicators

Intel’s implied volatility is 66.16%, and its IV percentile is 36.65%, which places current volatility in a neutral historical zone rather than an elevated one. Combined with an IV/HV ratio of 0.90, options do not appear aggressively priced relative to recent realized movement, suggesting premiums are relatively reasonable instead of notably expensive. The Call/Put volume ratio is 1.31.

Large Trades

A call sale worth $4.20 million was the largest displayed trade, with 2,200 contracts sold at the 120.0 strike expiring on 2027-03-19. With Intel referenced at $116.19, this call was out of the money at the time of the trade, making it a bearish or at least upside-capping position. Strategically, selling an out-of-the-money long-dated call at this strike suggests the trader was expressing a view that the stock’s upside may remain limited below $120.0 over that horizon, while also seeking to collect premium from elevated optionality rather than paying for bullish exposure.

A call purchase worth $2.65 million was the second highlighted trade, with 4,500 contracts bought at the 180.0 strike expiring on 2027-03-19. This contract was also out of the money versus the $116.19 reference price, but unlike the call sale above, this was a clearly bullish directional bet with convex upside exposure. The buyer committed premium to a far-out long-dated strike, indicating a willingness to position for a substantial upside move over time, likely reflecting a high-conviction view that Intel could re-rate materially if longer-term fundamentals or sentiment improve. Overall, the large-trade flow leans moderately bullish: while the biggest single print was a bearish call sale that capped upside, the broader block activity showed repeated put selling alongside selective call buying, a pattern more consistent with investors willing to own downside risk and position for stabilization or appreciation rather than bracing for a major decline.

Strategy Reference

For a seller seeking low assignment probability, the March 2027 $140 call offers a wider buffer above the $120 cap while still collecting premium from Intel’s elevated long-dated optionality; alternatively, a bull put spread using the $100/$90 strikes may generate income with defined risk if one prefers not to post a large uncovered margin requirement.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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