The Dow Jones Industrial Average is making a run to its lows of the day with big help from Intel (INTC, news, chart, volatility). Shares of the chipmaker are off $1.11, or 6.5 percent, to $15.88, amid some pre-earnings jitters. 33 analysts offer coverage on the chipmaker and the range of estimates for the most recent quarter is for earnings per shraes between 32 and 36 cents. Consensus is 34 cents. Shares of the chipmaker rose in mid July after the company reported quarterly earnings of 28 cents, which beat analyst estimates by three cents. Investors seem less upbeat today. Not only are shares down 6.5 percent and the day’s biggest loser in the Dow Jones Industrial Average, implied volatility in the options market is elevated. In the October at the moneys, implied volatility is 141 percent, compared to 78 percent for November. The skew between the two months hints at a possible earnings gap move of $1.5, or 9.5 percent, when Intel releases results after the closing bell.
About the Author (Author Profile)
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.