Currently, the semiconductor market is experiencing a boom which financial experts attribute to the buzz created recently.
The recent consolidation which saw Microchip Inc. (MCHP) purchasing Microsemi Corp. (MSCC) in a mutually beneficial deal attests to this fact.
With 4.2% boost in one day alone, Intel Corporation is enjoying all the attention it can get. It is also predicted to increase with time after a big price-target hike.
This is causing a lot of enthusiasm and buzz among analysts and options traders and many people in the market are considering putting their money where their mouth is.
One of the firms leading the pack on this matter is Nomura, increasing its Intel price target by 20% ($50 to $60). The last time this was seen was almost 18 years ago, in the year 2000.
If the recent trend is anything to go by, we are in for a ride, with the shares of Intel Corporation surging steadily. 37% increase in value must count for something, right?
Options traders are also keeping an eye on the put-call ratio of 3.64 which is being broadcasted on International Securities Exchange (ISE) and Chicago Board Options Exchange (CBOE).
A comparison of the call open interests and put open interest reveals a unique finding. The call open interest is put at 987,805 contracts, while the latter is about 647,501 contracts.
Now, the race is on for the stock which will exceed the half-century mark. Expectations are high, the tension is rising and the stock itself is not stopping.
The data obtained from various options exchanges points analysts in the direction of buy-to-open activity. Another news which gives Intel Corporation hope is the ongoing rumor that Apple might ditch its current chip supplier (Qualcomm) for Intel.
Although INTC has previously enjoyed the feeling of being traded at $50.85 in January, a return would be phenomenal.
— The Option Specialist