Option Focus | Intel's $1.86 Million Double Short Put Combo and $667,800 Bear Call Spread Reveal Premium-Collecting Caution Despite Modestly Bullish Tape

Option Witch
Sep 25

Intel closed at $127.39, up 3.91% from the previous session.

The session’s largest displayed structures were a $1.86 million double short put combination expiring in 2027 and a $667,800 bear call spread expiring in 2026. Both trades emphasize premium collection over aggressive directional bets, with sold puts far out of the money and a defined-risk call spread leaning bearish. The overall large-trade flow leaned slightly bullish, but the institutional activity shows clear caution and range-trading expectations rather than a strong upside breakout chase.

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Options Indicators

Intel’s implied volatility is 73.80%, and with an IV percentile of 60.96%, current option pricing sits in a neutral volatility range rather than an extreme one. The IV/HV ratio of 1.08 indicates implied volatility is running slightly above historical volatility, suggesting the options market is embedding a modest premium versus recent realized movement, but not to a degree that would make contracts look clearly overinflated or unusually cheap. The Call/Put volume ratio is 2.23.

Large Trades

A bear call spread with a net credit of $667,800 stands out as one of the day’s key institutional structures, built by selling the 129.0 call and buying the 133.0 call for the 2026-10-02 expiration, with both legs out of the money versus the $127.39 reference stock price. This is a classic bearish call spread that collects premium upfront while defining upside risk, signaling a view that Intel is unlikely to rally meaningfully above the lower strike over the life of the trade. The strategic intent is primarily premium collection with a bearish directional lean, as the trader benefits most if the stock remains below 129.0 and the spread expires worthless.

A same-direction double short put combination with a net credit of $1.86 million was the largest displayed premium-selling structure, consisting of short 100.0 puts and short 90.0 puts expiring 2027-01-15, with both strikes out of the money. This is not a synthetic position but a put premium-selling structure that expresses a range-bound to mildly bearish stance: the trader is willing to collect substantial premium while betting the stock does not suffer a deep breakdown toward those lower strikes. Because both legs are short puts, the trade reflects income generation and volatility selling, but it also reveals a willingness to absorb downside assignment risk if Intel weakens sharply, making the posture neutral-to-bearish rather than outright bullish.

Overall, the large-trade flow leans slightly bullish, but the conviction appears mixed and cautious rather than aggressively directional. The broader tape includes notable upside call buying and put selling that support a constructive bias, yet the two displayed institutional trades both emphasize premium collection and restrained expectations, especially through the bearish call spread and the downside put-selling structure. Taken together, the figures suggest the market is not positioning for a major collapse, but large traders also seem reluctant to chase a strong upside breakout, implying a modestly bullish outlook with clear signs of caution and range-trading expectations.

Strategy Reference

For a low assignment probability put sell, consider the 90.0 strike or lower in a nearer expiration, but if margin is a concern, a put credit spread such as selling the 100.0 put and buying the 90.0 put offers a defined-risk alternative while still collecting premium from the elevated implied volatility.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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