Replies to post #132170 on 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.

[RobertG]

Intel aggressively promoting tablet CPUs in China
Cage Chao and Monica Chen, Taipei; Steve Shen, DIGITIMES [Monday 14 April 2014]
Intel has resorted to an aggressive pricing strategy to promote sales of its tablet-use processors, particularly in China, a move which apparently will take on Qualcomm and MediaTek, while ramping up its market share, according to industry sources.

Prices of Intel's mainstream quad-core tablet CPUs have dropped to below US$5, which are almost on par with those offered by China-based chipset suppliers such as Rockchip Electronics and Allwinner Technology and even below those available from Nvidia, Qualcomm and MediaTek, said the sources.

Consequently, the number of Intel-based tablets is likely to expand in a great proportion as more and more China-based brand and white-box tablet vendors are expected to use Intel's tablet CPUs to develop new products, the sources revealed.

Intel's new policy also focuses on deepening its relationship with the supply chain in China, highlighting by its recent announcement of establishing an Intel Smart Device Innovation Center in Shenzhen and a US$100 million Intel Capital China Smart Device Innovation Fund, commented the sources.

To encourage China-based tablet makers to use Intel's CPUs, the chipset vendor is offering assistance in terms of design, technology and marketing, the sources indicated.

Intel's offerings will be particularly attractive to white-box tablet makers as they can optimize low-priced chipsets and advanced technologies to roll out competitive models for the entry-level segment, added the sources.

Intel aims to ship 40 million tablet CPUs in 2014, including entry-level Bay Trail family and SoFIA 3G platform products, the sources noted.