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Traders think Intel won't back down

Chris McKhann (chris.mckhann@optionmonster.com)

 Intel has been a monster, and traders think it will hold its ground.

optionMONSTER's tracking systems show that 10,000 of the weekly 22 puts expiring on Aug. 22 were for the bid price of $0.26. Open interest stood at just 857 contracts when the session began, which indicates that new positions were initiated.

He or she expects the semiconductor giant to remain above $33 over the next 2-1/2 weeks. Under that strike, they're on the hook to buy shares, but above it they will keep the premium as profit. (See our Education section for more on turning time into money with options.)

INTC declined 1.46 percent to $33.33 in morning trading. It touched a 12-year high of $34.83 two weeks ago, up from below $32 before earnings came out in the middle of July. The stock is also up 28 percent since the start of January, making it the best performing member of the Dow Jones Industrial Average during that time.

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