Intel Options Trading Reflects Potential Breakout On Earnings Release: Zhang

On CNBC's "Options Action," Tony Zhang said Intel Corp INTC traded actively on Wednesday, with 146,000 contracts traded, approximately 1.5 times the average daily volume.

Intel is gearing up for its earnings release Thursday after the bell. What is particularly interesting is the options market is implying about a 4.5% move on the earnings announcement, although the stock has averaged almost double that, at 7.9% over the last eight quarters, Zhang said. 

One trader bought around 2,300 contracts of the April 2022 $57.50 call options for an average price of about $3.20. That’s six months from expiration, he said, while adding that this is betting that Intel could rise about 9% over the next six months. This trade incorporates the next two earnings, Zhang said. 

Intel’s stock has been rangebound for the last six months.