TD Ameritrade's JJ Kinahan On Options Activity At Intel, JPMorgan

• Intel Corporation INTC and JPMorgan Chase & Co. JPM will report third quarter financial results on Tuesday, after the market closes.
• Benzinga spoke with TD Ameritrade’s Chief Strategist JJ Kinahan about the companies.
• The expert shared some comments regarding options activity in these stocks.

Intel

Regarding the tech giant, Kinahan said that, in terms of volatility, Intel seems to stand “in the middle of the range,” so there’s nothing that really stands out. The market is pricing in a $1 surge in the stock price, he said.

The stock has been “on a nice run over the last month, but it has traded toward a sideways now, the last couple of weeks." What’s interesting is that its 50-day moving average is close to the current price.

Options wise, the expert assured someone bought the December $36 calls on Tuesday morning, which he finds interesting going into the call. A play like that usually means “you are not just playing for today’s earnings, but you are playing for a nice announcement out of the earnings call that will lead to sustained bullishness over the next couple of months.”

JPMorgan Chase

When asked about the Jamie Dimon gang, the strategist again highlighted the “flattish” behavior of the stock recently.

Implied volatility stands in the lower quarter, at about 25 percent, close to the lower end of its historic levels.

Related Link: JC Parets: Stay Away From Banking Stocks

“When we look at what people are sort of playing, the weekly $62 calls have seen some buyers.” Other than that, the expert thinks expectations for JPMorgan are quite low. Even though volatility is too, volume in options has not been remarkable, he explained, adding that he thinks there is “a bit of nervousness” surrounding the call.

While the volume in stocks has been good, “the options market hasn’t been outstanding."

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.