Intel (INTC, news, chart) puts saw brisk trading as shares of the world’s largest chipmaker fell 94 cents to $20.60. Volume in the options market is running double the usual. More than 150,000 INTC puts traded on the day, compared to 44,000 call options. Investors are clearly on the defensive as semiconductors continue their recent slide. The Semiconductor HOLDRS (SMH) have seen a violent sell off this week, falling 8.2 percent. The decline has pushed SMH beyond July lows and to its worst levels in 5 years. Intel is down nealry 10 percent this week and back to levels last seen in on July 16. The bearish trading in the chip sector comes ahead of an earnings report from National Semi (NSM) tomorrow morning.