Intel had been rising on rumors that it was going to have a better quarter than expected. Intel has beaten estimates much more than not. In addition, there was no warning to the downside. As such, the stock had surged in the last few days.
I'm getting a bit long in the tooth and for the first time I took advantage of the maxim "buy the rumor, sell the news." I did this in a contrarian manner by closing out two-thirds of my put selling positions in Intel at the top when the stock nearly hit 23.
Intel's quarterly report was a mixed bag at best. My only positions I have left are 5 February naked puts written at the 23 strike for which I've already collected over $500 in premium and some buy and hold shares in my wife's IRA where we reinvest the dividend.
Even with the drop in Intel today I expect I will be able to roll the Intel 23's and bring in more premium. Long term I expect Intel to be a fine performer. It's a heavyweight which is really attracting the dividend growth investor crowd.
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