I think the big institutional investors will find intel too good a return (long term) to ignore at this low price level. The 3% yeild, is much higher than what they can borrow money for. If you borrowed today, say $100m, would cost you in interest $1.9m for little iver a year hold. Buy $100m of Intel stock, (3,738,315 shares)and you could collect 5 x min $0.21 or near $3.9m. Sell 3.8m share Jan 13 call contracts at say $30 get you another $3.7m.
In years time If stock price stays at $27.After paying interest of $1.9m, will leave you extra $5.8m. If stock price rises to $27.After paying interest of $1.9m, will leave you extra $15.8m. If stock drops. After paying interest of $1.9m, will need to be under $25.25 before it cost you money. Possibly under $23 before you get margin called.
IMO, Downside risk is there, though the upside potential is far more attractive, especially given the Ultralow PE that Intel trades at.