Comparing recent price action and option trading can provide insight into the overall sentiment that traders and investors possess toward a company’s future performance.
The share price briefly rose to an above average range in early 2022 before falling to a below average range in the week before earnings.
This array helps to highlight the way the price has risen from the middle portion of this range to the upper bounds.
After reporting earnings in late October, Intel stock fell 11.6% the day of reporting earnings, then proceeded to meander around the 20-day moving average for much of the quarter.
However, providing further context to this price action can paint a clearer picture, while illuminating key details for chart watchers.
It’s evident on this chart that Intel, a notable underperformer over that past year, has recently been ahead of its sector and its industry, both of which have been relatively beleaguered of late.
Intel’s performance against the wider market is intriguing considering the recent activity of option traders.
The open interest for Intel is likewise bullish at first glance, as it features 1.3 million calls compared to 943,000 puts.
28 expiration date, the open interest features 60,000 calls compared to 45,000 puts.
While perhaps not the first that comes to mind when thinking of bellwether stocks, it’s possible that the earnings results of Intel could have an effect on indexes directly.
While the company has appeared to make strides in the headlines, the real story will become apparent when Intel reports earnings after the market closes on Wednesday, Jan.