Intel $INTC ( ▲ 3.16% ) is ripping to a new 52-week high on Tuesday, driven almost entirely by an explosion of bullish options activity despite little in the way of fresh fundamentals. Nearly 250,000 call contracts traded within the first hour, matching the stock’s typical full-day average, and the put/call ratio has fallen below 0.25. That is the lowest reading since August 14, when Intel popped on reports that the U.S. government was considering and later took an equity stake in the company.
The broader backdrop might also be helping. The Trump administration announced a $150 million investment in xLight, a startup aiming to challenge ASML $ASML ( ▲ 2.23% ) in the specialized world of extreme ultraviolet lithography, which is needed to make advanced chips. Traders noticed the connection that xLight’s executive chairman is former Intel CEO Pat Gelsinger, which adds to the perception of government support for the U.S. chip ecosystem.
For now, the options market is treating Intel like a comeback bet, and today’s surge shows how crowded that trade is becoming.