The largest volume that I have seen in INTC was in Nov 2011 when there were two deep call strikes $15 and $17 I think. There was 660,000 contracts each for a total of 1.2million contracts in just those two strikes. Nov 3rd was the largest fails to deliver number of about 1.7m shares, up from about 100k the day before.
The 30k $27 SEP put contracts were very curious to me. It looked like someone just sold the puts. 30k contracts translates to 3million Intel shares. There was also 12k of SEP $25 put options too but that is a number that I note down but not that infrequent. The $25 were out of the money and appear to be defensive insurance purchased and not associated with the 30k $27.
Is that bullish or bearish. They are open put options so someone selling IN THE MONEY put options are expecting to get the shares. I thought that it was either a proxy buy or a proxy short cover. Both seem bullish.
These options traded near $2.25 when Intel was trading at $25.50 so the break even price would be $27 - $2.25 = $24.75 minus any costs (commissions, fees, ... ).
When Intel was trading at $25.50, someone acquired rights to Intel shares in SEP for $24.75.
Intel traded as high as $25.65 and $25.68 on Tuesday and Wednesday.
There is a 22.5 cent dividend awarded in early Aug. that is covered by the SEP puts.
With Intel trading at $25.50, sell 30,000 SEP $27 put options as a proxy $24.75 buy.
Short Intel as a "sell" of the "$24.75 shares" acquired by selling the SEP $27 PUT.
The short acquires the cost of paying the 22.5 cent dividend so the short has to happen above the $24.75 acquire price by the 22.5 cent dividend.
The only risk is that Intel finishes SEP above $27 and you do not get the shares.
That risk is pretty low.