Investors in Intel Corp (NASDAQ: INTC) saw new options trading begin today for the February 2027 expiration. A put contract at the $92.50 strike price currently has a bid of $20.85, which could allow investors to acquire shares at a net cost basis of $71.65, reflecting a potential discount of approximately 2% from today’s trading price of $94.76. The likelihood of the put contract expiring worthless is estimated at 65%, offering a potential return of 22.54% on cash commitment or an annualized yield of 37.91% if valid.
On the call side, a contract at the $97.50 strike price is bidding at $21.90. Investors selling this covered call while purchasing shares at $94.76 could anticipate a total return of 26.00% if the stock is called away at expiration. The odds of this call contract expiring worthless are currently at 38%, which would allow the investor to retain both the shares and the premium, translating to a 23.11% yield boost or 38.87% annualized return.
The market presents heightened volatility, with implied volatility for the put contract at 86% and for the call contract at 83%, compared to an actual trailing twelve-month volatility of 76%.
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