Options volume in Intel (INTC, news, chart) is running three times the normal, with 101,000 INTC calls and 99,000 puts trading ahead of an earnings report due out after the closing bell. Sentiment seems relatively upbeat, with INTC trading up 43 cents to $20.91 ahead of the news. 32 analysts offer coverage on the stock and the range of estimates is for the chipmaker to post quarterly earnings between 24 and 29 cents a share. Consensus is quarter. Intel posted in-line results in the previous quarter and missed by two cents in the period before that. This time, the market seems priced for a modest increase in post-earnings volatility in Intel shares. Implied volatility in the July options is around 80 percent, compared to 44 percent for the August options, which implies a possible gap move of roughly 5 percent, or $1.05 a share, when the numbers are released.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.