Investors in Intel Corp (NASDAQ: INTC) saw new options trading begin today for the July 22 expiration, including a notable put contract at the $110.00 strike price with a current bid of $6.10. Selling to open this contract allows investors to buy Intel shares at an effective cost basis of $103.90 if exercised, offering approximately a 1% discount to the current trading price of $110.64. The probability of this put contract expiring worthless stands at 55%, potentially yielding a 5.55% return on the cash commitment or 134.94% annualized if it does expire worthless.
On the calls side, a contract at the $115.00 strike price has a current bid of $6.00. Investors selling a covered call at this strike price can expect a total return of 9.36% if the stock is called away by expiration. The likelihood of this contract expiring worthless is around 54%, which could yield an additional 5.42% return, or 131.96% annualized, if it remains unexercised. The implied volatility for the put is 81%, while the call’s implied volatility is 98%.
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