IB Options Brief: Intel Corp. (INTC) & JPMorgan Chase & Co. (JPM)
INTC – Intel Corp.
Shares in the chip maker are on the mend today, up 1.3% at $23.57 as of 12:25 p.m. ET, reversing some of the declines suffered during the prior two trading sessions. A large bullish risk reversal initiated on INTC this morning suggests one big options market participant is positioning for further gains in the price of the underlying this year.
It looks like the strategist sold around 25,000 puts at the Dec. $21 strike at a premium of $0.45 each in order to partially offset the cost of buying roughly the same number of Dec. $25 strike calls at a premium of $0.47 apiece. The trader paid a net premium of $0.02 per contract and stands ready to profit at expiration in December in the event Intel’s shares rally 6% to exceed the effective breakeven price of $25.02.
JPM – JPMorgan Chase & Co.
Upside calls with three full trading sessions remaining to expiration are active today as shares in the largest U.S. bank continue to march higher. Shares in JPMorgan are up 1.2% at $39.22 as of 12:55 p.m. ET, marking a near 30% gain in the stock price since the post-whale trade low of $30.83. Options players positioning for further upside in the shares in the near term scooped up weekly calls on the financial services firm.
Traders exchanged more than 8,900 calls at the Sep. 14 ’12 $40 strike in the first half of the session, buying most of the volume for an average premium of $0.16 apiece. Call buyers may profit at expiration as long as shares in JPM rally another 2.4% to top the average breakeven point at $40.16. The stock last traded above $40.16 back in May.
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