On October 10, 2012 I continued the following transaction:
08/24/12 STO 5 INTC Oct 20 2012 23 Puts @.35 161.20
10/10/12 BTC 5 INTC Oct 20 2012 23 Puts @1.22 -623.79
10/10/12 STO 5 INTC Nov 17 2012 23 Puts @1.53 761.14
This is how I played the Intel tank on these puts last month. On this trade I have now brought in $298.55 in option premium. If put to me my cost basis is down to $22.40. I anticipate rolling these puts out, rolling out and reducing a contract or rolling down and out. All this will occur prior to option expiration and will only be done for a net credit.
Even though INTC has tanked I am still bringing in regular income and reducing my cost basis in the stock. Unfortunately, my margin maintenance has increased substantially and of this writing it sits at $2800.
I very recently thought Intel had bottomed but now there are rumors that Apple wants to build their own processors and not use Intel anymore. Intel is a huge multinational with a rising dividend so I'm not too worried. I will keep on: rolling, rolling, rolling...
Some interesting trades.
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