Today’s tickers: INTC, HALO & JPM
INTC - Intel Corp. – Shares in the chip maker are in negative territory this morning, trading lower with the broader market on signs budget talks are stalling and lawmakers may not reach a deal by year end. Intel’s shares are down better than 2% to stand at $20.59 as of midday in New York. Fresh interest in weekly call and put options on the name this morning suggests traders are preparing for volatility in the price of the underlying through the end of 2012. Options players bracing for Intel’s shares to potentially fall sharply during the next four trading session snapped up around 1,000 puts at the Dec. 28 ’12 $20 strike and another 550 puts at the Dec. 28 ’12 $19.5 strike at premiums of $0.07 and $0.04 apiece, respectively. Traders long the $20 and $19.5 strike contracts may profit in the event that Intel’s shares drop roughly 3.2% and 5.5% to settle below the effective breakeven prices of $19.93 and $19.46 by expiration next week. Meanwhile, strategists holding out hope that a deal gets done and lifts equities in the near term appear to be purchasing upside calls today. The Dec. 28 ’12 $21 strike calls saw the most volume, with upwards of 5,000 contracts in play during the first half of the session. Time and sales data suggests the bulk of the volume was purchased for an average premium of $0.15 apiece. Buyers of the $21 strike calls profit at expiration as long as Intel’s shares rally 2.7% to settle above $21.15.
HALO - Halozyme Therapeutics, Inc. – Upside calls on biopharmaceutical company, Halozyme Therapeutics, Inc., are active today, with shares in the name rallying as much as 30% to $7.19 on Friday morning. The stock popped after Halozyme announced it will work with Pfizer to create up to six new injectable drugs. Options traders positioning for HALO’s shares to extend gains during the next four weeks purchased around 250 calls at the Jan. 2013 $7.5 strike for an average premium of $0.37 per contract. Call…
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