INTC Options Set to Start Trading on July 29th

Intel Corp (Symbol: INTC) has introduced new options trading for expiration on July 29th. A notable put contract at the $100.00 strike price has a current bid of $4.85, allowing investors to potentially purchase shares at an effective cost basis of $95.15, about 4% less than the current share price of $104.48. Analysts estimate a 63% chance of the put expiring worthless, which could yield a 4.85% return on cash commitment, translating to 118.02% annualized.

On the calls side, a contract at the $110.00 strike price is currently bid at $5.95. If shares are purchased at $104.48 and the call is sold, investors could see a 10.98% total return if the stock gets called away, with a 54% chance of the call expiring worthless, allowing them to retain both shares and the premium. In this case, the premium would equate to a 5.69% extra return, or 138.58% annualized.

The implied volatility for the put contract is 98%, while the call stands at 110%. The trailing twelve-month volatility for Intel, based on the latest closing values, is calculated at 75%.