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Huge put spread is aimed at Intel

Chris McKhann (chris.mckhann@optionmonster.com)

A large put spread targeted Intel yesterday as shares bounced off four-month lows.

optionMONSTER systems show that 21,690 October 20 puts were bought for the ask price of $0.18 as the same number of October 19 puts were sold for $0.10. Volume was more than previous open interest at each strike, so this is a new position position.

The trader spent just $0.08 on the vertical spread , which could net $0.92 if INTC is below $19 at expiration in two months. (See our Education section)

The chip maker finished yesterday at $22.52, up 1.09 percent. That added to Monday's gains as shares bounced off their lows from Friday. Shares have been trending downward with lower highs and lower lows since trading just shy of $26 in early June.

More than 140,000 INTC options changed hands yesterday, compared to a daily average of 54,442 in the last month.

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