To The Moon

Intel Options Explode and $25 Calls Surge Amid Possible US Stake in Company

Fueled by reports of Trump administration talks to take stake in, $Intel(INTC)$   shares surged 23% last week. Options volume hit a 6-month high, with aggressive call buying dominating sentiment.

Options Data Analysis

Volatility & Sentiment Signals:

~Implied Volatility (IV): 60.13%, Sitting at 64th percentile of 1-year range.

~Put Skew: Plunged from +6 in April to -7.9, signaling reduced demand for downside protection.

Open Interest: The Put/Call ratio stands at 0.59, indicating a dominance of call options. Notably, open interest is heavily concentrated in the $25 strike call options expiring on September 19, 2025.

Max Open Interest Snapshot (80%–120% Moneyness, Expiry: September 19, 2025)

~Put/Call Ratio: 0.64 (Calls dominate open interest)

~Max Pain: $22 (The price point where most options would expire worthless)

~Max Open Interest: Highest call open interest is concentrated at the $24 and $25 strikes. On the put side, the $20 strike holds the most open contracts.

The standout contract is the $25 strike call option expiring on September 19, 2025, which has seen a significant build-up in open interest. This suggests that traders are positioning for continued upside.

Option Trading Idea

Given the surge in call premiums, outright call buying has become more expensive. For bullish investors looking to participate in potential upside while managing cost, a Bull Call Spread could be a more efficient approach.

Strategy: Bull Call Spread

~Buy the $25 Call expiring September 19, 2025

~Sell the $30 Call expiring on the same date

This strategy allows investors to reduce upfront premium costs by selling a higher strike call to offset the cost of the long call. The trade profits if Intel rises above $25, with a maximum gain realized if the stock closes at or above $30 by expiration. This approach balances upside exposure with risk management, especially in a high-IV environment.

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Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy