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...
Showing posts with label Intel. Show all posts
Showing posts with label Intel. Show all posts
Tuesday, November 6, 2012
Friday, November 2, 2012
Trade Continuation: Intel (INTC) Naked Puts
On October 10th I rolled this Intel trade as follows:
08/22/12 STO 5 INTC Oct 20 2012 24 Puts @.37 $171.18
10/10/12 BTC 5 INTC Oct 20 2012 24 Puts @2.15 -1088.79
10/10/12 STO 5 INTC Nov 17 2012 24 Puts @2.40 1196.13
It's no secret that Intel tanked...and hard. When I entered into this trade Intel was at 25.70 and it tanked to the low 21's.
I rolled these puts out a month for a net credit of $107.34. I have now brought in $278.51 in option premium. This lowers my cost basis in INTC to $23.44. As of this writing that puts me down ~.96/share. Not bad for a complete tank job! Put selling is a very valuable trading tool.
Absent unforeseen circumstances, I will roll these puts again in a couple of weeks, dropping my cost basis once more. I can roll out at the same strike with 5 contracts, roll out at the same strike lowering to 4 contracts or roll out and down. I will only do so for a net credit.
08/22/12 STO 5 INTC Oct 20 2012 24 Puts @.37 $171.18
10/10/12 BTC 5 INTC Oct 20 2012 24 Puts @2.15 -1088.79
10/10/12 STO 5 INTC Nov 17 2012 24 Puts @2.40 1196.13
It's no secret that Intel tanked...and hard. When I entered into this trade Intel was at 25.70 and it tanked to the low 21's.
I rolled these puts out a month for a net credit of $107.34. I have now brought in $278.51 in option premium. This lowers my cost basis in INTC to $23.44. As of this writing that puts me down ~.96/share. Not bad for a complete tank job! Put selling is a very valuable trading tool.
Absent unforeseen circumstances, I will roll these puts again in a couple of weeks, dropping my cost basis once more. I can roll out at the same strike with 5 contracts, roll out at the same strike lowering to 4 contracts or roll out and down. I will only do so for a net credit.
Thursday, September 6, 2012
New Trade: Intel (INTC) Naked Puts
Yesterday with Intel trading down to ~$24.40 I entered into the following transaction:
09/05/2012 STO 5 INTC Oct 20 2012 22 Puts@.22 $96.16
This is a 45 day trade that is using $1350 in margin maintenance. If the puts expire worthless we will earn 7.1% or 57.6% annual return on maintenance. If put to us our yield on cost will be a whopping 4.12%.
That's 3 Intel trades I've got going for October with the 24's, 23's and now the 22's. After today's action I feel pretty good about it but if the trades go against me there appears to be ample opportunity to roll down and out for a net credit. As such, an exit strategy is in place.
09/05/2012 STO 5 INTC Oct 20 2012 22 Puts@.22 $96.16
This is a 45 day trade that is using $1350 in margin maintenance. If the puts expire worthless we will earn 7.1% or 57.6% annual return on maintenance. If put to us our yield on cost will be a whopping 4.12%.
That's 3 Intel trades I've got going for October with the 24's, 23's and now the 22's. After today's action I feel pretty good about it but if the trades go against me there appears to be ample opportunity to roll down and out for a net credit. As such, an exit strategy is in place.
Monday, August 27, 2012
Trading/Investment Opportunity with Intel
It seems I'm not the only one who likes the opportunity the weakness in Intel is presenting.
Check this article out. And this one. And this one. And one more for good measure.
Bill Cara is back in as well according to his recent Week in Review. Teddi Knight is in big at Fullyinformed.com. Even though I generally ignore the noise of "hot tips", when Bill and Teddi speak, I listen.
Please do your own due diligence and have a great day.
Check this article out. And this one. And this one. And one more for good measure.
Bill Cara is back in as well according to his recent Week in Review. Teddi Knight is in big at Fullyinformed.com. Even though I generally ignore the noise of "hot tips", when Bill and Teddi speak, I listen.
Please do your own due diligence and have a great day.
New Trade: Intel (INTC) Naked Puts
On Friday before the close with Intel trading at ~24.85 I entered into the following transaction:
08/24/12 STO 5 INTC Oct 20 2012 23 Puts @.35 161.20
This is essentially a one strike down, double down of my trade of a few days ago. I was able to take advantage of weakness/fear in Intel due to the Buffett hangover and weak results from Hewlett-Packard and Dell. If put to us our yield on cost will be right under 4% and we're just one roll away from a yield on cost above 4%. I feel pretty good that a 4% yield will buoy the stock price. In addition, we have strong support at the 25 price level.
This is a 57 day which uses ~$1800 in margin maintenance. If the puts expire worthless we will earn ~8.95% or 57.3% annual return on maintenance. If the stock drops I feel confident we can roll out and/or down for a net credit. As such, an exit strategy is in place.
08/24/12 STO 5 INTC Oct 20 2012 23 Puts @.35 161.20
This is essentially a one strike down, double down of my trade of a few days ago. I was able to take advantage of weakness/fear in Intel due to the Buffett hangover and weak results from Hewlett-Packard and Dell. If put to us our yield on cost will be right under 4% and we're just one roll away from a yield on cost above 4%. I feel pretty good that a 4% yield will buoy the stock price. In addition, we have strong support at the 25 price level.
This is a 57 day which uses ~$1800 in margin maintenance. If the puts expire worthless we will earn ~8.95% or 57.3% annual return on maintenance. If the stock drops I feel confident we can roll out and/or down for a net credit. As such, an exit strategy is in place.
Wednesday, August 22, 2012
New Trade: Intel (INTC) Naked Puts
This afternoon with the market down ~80 points and Intel down to ~$25.70 I entered into the following transaction:
08/22/12 STO 5 INTC Oct 20 2012 24 Puts @.37 $171.18
Buffett just sold his stake in Intel. Bill Cara just sold his stake. Fear and uncertainty is setting in for Intel. I took this opportunity to write puts a point below the 25 support level.
This is a 59 day trade which will initially take $1700 in margin maintenance. If the puts expire worthless, return on maintenance will be 10% in 59 days or 61.86% annual. If put to us our yield on cost will be 3.8%. That yield should buoy the stock absent unforeseen market conditions. In the event the stock tanks we will look to roll down and out for a net credit. As such, an exit strategy is in place.
08/22/12 STO 5 INTC Oct 20 2012 24 Puts @.37 $171.18
Buffett just sold his stake in Intel. Bill Cara just sold his stake. Fear and uncertainty is setting in for Intel. I took this opportunity to write puts a point below the 25 support level.
This is a 59 day trade which will initially take $1700 in margin maintenance. If the puts expire worthless, return on maintenance will be 10% in 59 days or 61.86% annual. If put to us our yield on cost will be 3.8%. That yield should buoy the stock absent unforeseen market conditions. In the event the stock tanks we will look to roll down and out for a net credit. As such, an exit strategy is in place.
Monday, July 23, 2012
Profitable Trade: Intel (INTC) Naked Puts
The following puts expired worthless:
07/09/12 STO 4 INTC Jul 21 2012 25 Puts @.26 90.99
We earned $90.99 in 12 days in this trade on ~$1500 in margin maintenance. This equates to a 6% return or 184% annual. The returns are so large as there was a quarterly report issued during the time of this trade.
I didn't see an opportunity I liked to roll out and/or down for a credit so I just let them expire worthless. I will look to trade INTC again should it drop under $25.
07/09/12 STO 4 INTC Jul 21 2012 25 Puts @.26 90.99
We earned $90.99 in 12 days in this trade on ~$1500 in margin maintenance. This equates to a 6% return or 184% annual. The returns are so large as there was a quarterly report issued during the time of this trade.
I didn't see an opportunity I liked to roll out and/or down for a credit so I just let them expire worthless. I will look to trade INTC again should it drop under $25.
Monday, July 9, 2012
New Trade: Intel (INTC) Naked Puts
Today with INTC down to about $25.90 I entered into the following trade:
07/09/12 STO 4 INTC Jul 21 2012 25 Puts @.26 90.99
This is a 12 day trade on a stock I'd like to own long term. It will soon be a member of the Dividend Achiever family. In fact, I expect the news of a dividend raise in the near future.
If these puts expire worthless we will earn 5.3% or 161.21% annual on $1713 in margin maintenance. The returns are inflated due to an earnings release set for July 17. If the stock drops we have many options to roll out and/or down for a net credit. As such, an exit strategy is in place.
Even if the stock doesn't drop I will probably look to roll on a weekly basis, if possible. INTC has weekly options.
07/09/12 STO 4 INTC Jul 21 2012 25 Puts @.26 90.99
This is a 12 day trade on a stock I'd like to own long term. It will soon be a member of the Dividend Achiever family. In fact, I expect the news of a dividend raise in the near future.
If these puts expire worthless we will earn 5.3% or 161.21% annual on $1713 in margin maintenance. The returns are inflated due to an earnings release set for July 17. If the stock drops we have many options to roll out and/or down for a net credit. As such, an exit strategy is in place.
Even if the stock doesn't drop I will probably look to roll on a weekly basis, if possible. INTC has weekly options.
Monday, January 23, 2012
Profitable Trade: Intel (INTC) Covered Calls
In a traditional IRA we were assigned our Intel covered calls. This trade went down as follows:
11/02/2011 Bought 200 INTC @ 23.8875 -4,787.49
11/02/2011 Bought 200 INTC @ 23.8875 -4,787.49
11/02/2011 STO 2 INTC Nov 19 2011 24.0
Call @ 0.42 72.47
11/14/2011 BTC 2 INTC Nov 19 2011 24 Calls @ .89 -189.52
11/14/2011 STO 2 INTC Jan 21 2012 24 Calls @ 1.70 +328.47
12/01/2011 Dividend +42.00
01/21/2012 Sold 200 INTC @ 24 +4779.91
In this trade we made $245.84 in 81 days on an average of ~$4600 invested. This equates to a return of 5.3% or 23.88% annual. As always we include our commissions paid in the calculations. We allowed ourselves to get assigned because we didn't see any attractive opportunities to roll for a credit. I only roll options for a credit, no exceptions. We really like INTC and will probably write out of the money covered puts in this account to buy it back at a price of our choosing. Of course we will be paid for our efforts.
11/14/2011 BTC 2 INTC Nov 19 2011 24 Calls @ .89 -189.52
11/14/2011 STO 2 INTC Jan 21 2012 24 Calls @ 1.70 +328.47
12/01/2011 Dividend +42.00
01/21/2012 Sold 200 INTC @ 24 +4779.91
In this trade we made $245.84 in 81 days on an average of ~$4600 invested. This equates to a return of 5.3% or 23.88% annual. As always we include our commissions paid in the calculations. We allowed ourselves to get assigned because we didn't see any attractive opportunities to roll for a credit. I only roll options for a credit, no exceptions. We really like INTC and will probably write out of the money covered puts in this account to buy it back at a price of our choosing. Of course we will be paid for our efforts.
Monday, November 14, 2011
Trade Continuation: Intel (INTC) Covered Call
Today with the DOW down ~31 and INTC at 24.75 I entered into the following transaction in a Roth IRA:
Bought 2 INTC Nov 19 2011 24 Calls @ .89 -189.52
Sold 2 INTC Jan 21 2012 24 Calls @ 1.70 +328.47
I rolled these in the money calls for a net credit of $138.95. In addition we will receive a $42 dividend on December 1st. This lowers our cost basis/amount invested to $22.67/share. Our assigned gain after commissions is $246 or 5.2% which equates to ~24.7% annually. At $22.67 our yield on cost is 3.7%. Intel is a company that I am interested in holding for the long term and this investment has me sleeping like a baby at night.
Bought 2 INTC Nov 19 2011 24 Calls @ .89 -189.52
Sold 2 INTC Jan 21 2012 24 Calls @ 1.70 +328.47
I rolled these in the money calls for a net credit of $138.95. In addition we will receive a $42 dividend on December 1st. This lowers our cost basis/amount invested to $22.67/share. Our assigned gain after commissions is $246 or 5.2% which equates to ~24.7% annually. At $22.67 our yield on cost is 3.7%. Intel is a company that I am interested in holding for the long term and this investment has me sleeping like a baby at night.
Tuesday, November 1, 2011
Good Article on Microsoft (MSFT) and Intel (INTC)
In the course of my reading today I came across an article I'd like to share. Microsoft and Intel are both raising their dividends at healthy clips, are very heavily traded and have great fundamentals. This makes them ideal enhanced income investments assuming one initiates their position when the stock is trading near the bottom of their trading channel. It's interesting to me that some high flyers during the dot com boom are now strong conservative income plays. Look for this gal to trade these issues when the opportunity arises. In fact I initiated a Microsoft investment earlier this afternoon.
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