Wednesday’s Vital Data: Intel Corporation (INTC), JPMorgan Chase & Co. (JPM) and Alcatel Lucent SA (ALU)

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Earnings news drove heavy options activity for many stocks on Tuesday, with Intel Corporation (NASDAQ:INTC) and JPMorgan Chase & Co. (NYSE:JPM) among the most active on the day.  Meanwhile, Alcatel Lucent SA (NYSE:ALU) was a favorite among call traders following news of a potential deal with Nokia Corporation (NYSE:NOK).

Trading was mixed on Wall Street, with the Dow Jones Industrial Average and the S&P 500 finishing with slight gains, while the Nasdaq dipped into the red. Earnings concerns continued to dominate the landscape, pressuring the CBOE’s put/call volume ratio higher to 0.66. The 10-day moving average also edged higher, coming in at 0.63.

Here, we’ll explore what had traders locked in on JPM, ALU and NOK.

Wednesday’s Vital Data: Intel Corporation (INTC), JPMorgan Chase & Co. (JPM) and Alcatel Lucent SA (ALU)

Intel Corporation (INTC)

Shares of semiconductor concern Intel are up roughly 3% in premarket trading after the company’s first-quarter earnings report last night. INTC reported profits of 41 cents per share on revenues of $12.78 billion, the former meeting Wall Street estimates while the latter just missed.

For the second quarter, Intel projected revenue of $13.2 billion, slightly below the consensus estimate. The company said its Internet-of-Things-related businesses were booming, but that overall performance still depends on PC demand, which could, in turn, depend on the reception of Microsoft Corporation’s (NASDAQ:MSFT) coming Windows 10 release.

Options activity was brisk heading into the report, with nearly 300,000 contracts trading on INTC stock. There was a lack of enthusiasm, however, as 57% of Tuesday’s volume traded on the put side.

Look for heavy volume in the April series of options today, as traders look to close out positions and take profits ahead of Friday’s expiration.

Alcatel Lucent SA (ADR) (ALU)

Stock in French telecom concern Alcatel Lucent surged more than 13% on Tuesday following news of a potential deal between the company and cellphone maker Nokia. Those reports were confirmed this morning. Nokia investors signaled that they were not as keen on the deal, however, sending NOK stock down 5% on the news.

Options traders were far from skeptical, however, with 77% of the 170,304 contracts trading on ALU crossing on the call side. Peak front-month open interest currently rests at the April $5 call strike, totaling 14,026 contracts, while peak put open interest is also at the April $5 strike, numbering 10,310 contracts.

The puts appear to be smart money heading into the open this morning, as ALU stock is down more than 15% in premarket trading.

JPMorgan Chase & Co. (JPM)

Shares of JPMorgan added about 1.5% on Tuesday and are up fractionally in premarket trading in the wake of the company’s first-quarter earnings report. JPMorgan saw a recovery in fixed-income trading, leading the firm to post better-than-expected earnings of $1.45 per share on revenue of $24.8 billion. Wall Street was expecting earnings of $1.40 per share on sales of $24.49 billion.

Options activity had a bullish tilt for JPM stock on Tuesday. With 133,551 contracts trading, the majority of the day’s volume (62%, to be precise) traded on the call side. Looking over front-month activity, peak call open interest currently totals 31,395 contracts at the in-the-money April $60 strike, with another 27,471 contracts at the April $62.50 strike.

As of this writing, Joseph Hargett did not hold a position in any of the aforementioned securities.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/04/wednesdays-vital-data-intel-corporation-intc-alcatel-lucent-sa-alu-jpmorgan-chase-co-jpm-options/.

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