Daily Options Seller Strategy | Google Places Massive TPU Order! Intel Jumps 11%—How Should Options Sellers Navigate the $110 Battle Zone?

I. Market Barometer

Major U.S. equity indices ended mixed in the previous session. After a collective plunge last Friday, semiconductor stocks staged a divergent rebound, with the sector surging on AI-related positive catalysts, $PHLX Semiconductor Index (.SOX.US)$ up 5.61%. Sharp volatility in the sector has driven up implied volatility, creating premium opportunities for options sellers.

II. Focus on Hot Targets

$Intel (INTC.US)$ Google TPU mega-order sparks rebound; bulls and bears clash at the $110 level

$Intel (INTC.US)$ The stock rose 11.19% in the previous session, closing at $110.27, hitting an intraday high of $112.54 and a low of $106.66. In the session before that (June 5), it plunged 11.28% amid a tech selloff, closing at $99.17—about 25% below its all-time closing high of $129.44.

Technically, the stock’s candlestick pattern is in a highly volatile phase characterized by sharp declines followed by sharp rallies. The June 5 plunge pushed the price below its 30-day moving average, disrupting the short-term uptrend. At $110.27, the current price remains below the 20-day moving average, placing it in a slightly weak to neutral short-term posture.

Over the past 24 hours, multiple major positive catalysts converged to ignite the stock price. According to informed sources, Google recently placed an order for Intel to manufacture more than 3 million AI chips (TPUs) by 2028. Additionally, rumors suggest Intel may become a backup manufacturing partner for giants like NVIDIA. These breakthroughs in foundry business significantly alleviated market concerns about Intel’s wafer fabrication segment. Combined with elevated short interest, this triggered a potential short squeeze, delivering strong positive momentum to the near-term share price.

Moreover, Intel CFO David Zinsner stated over the weekend at a Bank of America conference that as AI evolves from 'training' to 'inference' and 'AI agents,' the CPU-to-GPU deployment ratio in data centers is rising substantially, supporting expectations for sustained strong revenue growth in its data center business.

Based on ratings from 31 Wall Street analysts, the stock’s current average price target stands at $90.26, with a high of $150.00 and a low of $45.00. Although the average target lies below the current price, the highest target indicates that some institutions remain optimistic about Intel’s long-term business transformation.

III. Seller Options Strategy

1. Cash Secured Put

Sell 1 contract of $Intel (INTC.US)$ 20260626 $95 Put; estimated margin requirement (for reference only): $9,500 ($95 × 100)

Opportunity filtering logic:

For investors who do not yet hold a position but believe in Intel’s foundry business inflection point thesis, the current share price sits in a zone roughly 25% off its historical highs and has just experienced extreme volatility—plummeting then surging sharply—making immediate buying risky amid potential further pullbacks.

However, fundamental catalysts are accumulating: the Google AI chip mega-order and rumors of becoming NVIDIA’s backup manufacturer provide tangible support for upside potential. By selling puts, investors can collect premium income to boost annualized returns on idle cash if the stock continues to trade sideways; if the price dips near the $95 strike due to short-term sentiment swings, they also gain the opportunity to acquire shares below the current market price.

2. Covered Call

Holding 100 shares $Intel (INTC.US)$Underlying stock: sell 1 contract of INTC 260717 $140 Call

Opportunity filtering logic:

For investors already holding Intel shares and facing unrealized gains amid volatility, the stock price faces technical resistance at the 20-day moving average in the near term. Following last Friday’s sharp 11% drop and Monday’s equally dramatic 11% rebound, Monday's rally occurred on insufficient volume, suggesting limited upside momentum.

Although investors remain bullish on long-term CPU demand prospects in the AI inference era, selling covered calls at this point allows them to collect option premiums to lower their cost basis. If the stock consolidates sideways, the premium income can effectively offset time-value decay; if the stock continues rallying and is called away above $140, it effectively locks in profits near all-time highs.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make good use of the options seller zone to understand the income strategies for selling optionsEarn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

Editor/Doris

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