I'm reporting another options trade yesterday. I sold 2 INTC puts. I've said it before that I like INTC and I'm willing to build up to a 1000 share position of the company over time.
The trade:
I sold 2 INTC Oct 19 '13 $22 puts @ 2.53. I collected $506 in premiums and if assigned, I would own another 200 shares at a cost of $19.47/share before commissions.
That's some nice option premium. Good to see you start 2013 where you left off in 2012.
ReplyDelete:) no reason to lighten up on the puts if they are working. Worst case is I will own a company I like anyways at a good price. I'm planning to target more "in the money" options to get larger premiums this year. Take care.
DeleteI agree, INTC is a good stock. I have it in my watch list too. Currently I will be adding a stock holding into my portfolio and I was thinking about AT&T, but your article made me thinking if I should change and add INTC instead. I will have to take a look at it closely again since I like the idea of buying stocks thru put assignments.
ReplyDeleteThanks for stopping by Martin. You should do your own analysis of INTC but I believe they will eventually be a big player in the mobile market. We may not see the benefit of their R&D in this area for another year though. Good luck!
DeleteAAI, of course I do my own due diligence and as I said INTC is on my buy list, just waiting for the right time to enter. I was only thinking it may be nice to switch my trades, but I wasn't allowed to sell puts due to recently deposited cash to my account (really stupid restriction), so I at the end stuck with my plan.
DeleteYou know I'm going to rave about this move, since I did a similar thing a few weeks ago. The only thing I would worry about is the upcoming debt ceiling battle and whether that will push the stock price far enough below the strike to make someone exercise the put and assign the stock to you. But with Oct expiration dates, that might not be an issue. Of course, getting assigned 200 shares of INTC isn't that bad.
ReplyDeleteYeah, worst case I get to own a company I already like at a cheaper price than it's currently trading. This is a win in my book.
DeleteNobody knows what will happen with more debt ceiling debates, I do expect there will be a lot of volatility in the market. From my experience so far, this is great for options premiums.