Intel ($INTC) just got rid of its CEO Pat Gelsinger after it recorded a loss of $18.7 Billion for the full year of 2024. This was the company’s first full year loss since 1986….ouch.
However, the important point here is that there were some interesting Unusual Options trades in Intel that came in ahead of the announcement about the new CEO Mr Lip Bu Tan.
These were some sizable Leap positions that are still open so there seems to be more upside coming if the new CEO can execute on the turnaround plan.
On Aug 2nd 2024 15893 INTC JUN 20th 2025 20.00 Calls were bought @ 4.85 for a total outlay of $7.7 million. The Open Interest at the time of the trade was 3396 and that has grown to 35,935. There is likely far more upside here especially if these contacts can be bought below $5.00.
The second noteworthy trade took place on Feb 11th 2025 when 6426 INTC MAR 20th 2026 30.00 Calls were bought @ 2.23 when the open interest was 386. The total bet size was $1.4 million. The open interest has since grown to 9734 and I expect more buyers to show up. Again, there is likely more upside here if these Calls can be had below 4.00.
Of course everything hinges on the “turnaround plan” that is to be executed by the new CEO.
Intel is beaten up and hated these days and it is just not sexy but good trading is all about the risk vs the reward and, based on how things are now, the risk profile of this trade appears to be very favorable.
By the way, if you want the Realtime Trade Alerts with Entry, Stop Loss & Profit Targets, you can test them out for $9.95/month or $99/Year until the end of the month.
