Intel Corp. (INTC) is trending in social media this morning. Mentions are up 556% in the last 24 hours. INTC is a large-cap S&P 500 tech stock that is always trending in the news.

Most of the headlines in the tech sector are related to chip designer NVDA, with AMD comments coming in 2nd. INTC, which not that long ago dominated the chip market, is seemingly overlooked. But that may be a mistake. The company is still a competitor for processors and they are still battling with their graphics chips as well.

From an options trader’s perspective, INTC options are a fraction of the cost of AMD and NVDA. INTC stock price is relatively flat, and there are many potential catalysts in the near future that could cause the whole tech sector to make bigger-than-expected moves.

This MDM graph compares the modeled expectations of current options prices (the orange line) to the actual movement of INTC’s stock price over the past year. You can see that the actual behavior (the blue histogram) made big moves up and down far more frequently than the modeled options prices expect. This tells us that INTC options for July 5th expiration are relatively inexpensive.

This Volatility Cone graph is showing us that volatility expectations (the yellow dots) for the 1-month period are below the 1-year average. To learn more about the Volatility Cone, click here. The rest of the periods are all at or above the 1-year average. For some reason, investors have underpriced the options in our target range.

This Volatility Term Structure chart is showing us that volatility expectations and options prices are the lowest for the July 5th expiration. To learn more about Volatility Term Structure, click here. Because we are interested in buying options we will use this expiration with our strategies.

INTC’s stock price is relatively flat, and the stock is trending in social media mentions. Volatility expectations are low, and options prices at our target expiration are relatively cheap.

Be sure to read the ODDS Online Daily Trade Idea report to get the details of our trade ideas for INTC options today.

To access Odds Online Daily and be able to see any stock you are tracking in this software, click here.

Thank you,

Don Fishback