Intel Corp (INTC)

[alexander-dumbass]

You peeked at my playbook. 8-) I work very much similar.

I have a core position and then trade outside that core position. I tend to write more puts than calls AND I am sensitive to the dividend arbitraging that pressures the Intel stock. I wrote some $27 June covered calls on a portion last week.

I like to sell AT THE MONEY puts and about 3 months out. That gets me a premium of about $1.20 and I then close when they drop to the 25/50 cent range. I will usually roll them out a quarter rather than admit defeat and take my medicine.

If Intel was priced at $22 today, I would probably write some July $22 puts. The July $26 puts gives an idea of what the $22 pricing would be: $1.12/$1.14. The early, weekly May $26 shows the premium decay (with the 20 5/5 dividend) .... 10 to 25 cents for a 90 profit or 45 cents per month per share ... if the shares stay flat, that drops to 25 cents per month .... if the shares drop I roll out ...

The ability to do math today at higher/lower strikes and roll out options makes me very relaxed working AT THE MONEY.