In this case, with Intel trading at $32, buying the January 32-strike call and the January 32-strike put would cost about $1.50. This particular trade will thus be profitable if Intel shares move more than $1.50 in either direction — or about 4.5 percent from current prices — by expiration Friday.
Read MoreTrader bets $6.5M against this hot sector
However, on CNBC’s “Fast Money,” Dan Nathan cautioned investors against actually going out and buying these two options, which would be collectively known as a “straddle.”
“If you’re looking to add protection to a long position or speculate to the downside, buying at-the-money straddles and buying implied moves are generally losing strategies into events like this,” Nathan said Wednesday. “I am leaning into the short side, but I am doing it with defined risk.”