Intel options trading surges as stock rallies, Cboe volatility drops

Intel options volume nearly tripled its monthly average on September 17, with more than 1.3 million contracts traded as the chipmaker’s stock continued a rally that has lifted it roughly 35% from its summer lows. Of the $320 million in buyer-initiated premium that flowed through Intel options, $231 million went to calls. That’s about 72 cents of every dollar wagered on the stock going higher, not lower. Around 270,000 call contracts were purchased compared to fewer than 140,000 puts. A broad-based tech options frenzy Intel wasn’t trading in a vacuum. AMD saw its own options volume nearly double its average, with 107,000 calls bought against 71,500 puts. CrowdStrike and SpaceX both posted bullish options flows that exceeded their respective 30-day averages. The most notable individual contract was the October 2 $115 call on Intel, which would require the stock to climb an additional 7.7% from its September 17 level to pay off. Market-maker pricing reinforced the theme. At-the-money calls were trading at roughly a $2 premium to equivalent puts, a skew that reflects elevated demand for upside participation. Volatility retreats after Fed action The Cboe Volatility Index, better known a...