The Money Tree

Safely Generating Income in Retirement

Rich’s INTC Trade

Posted by mounddweller on December 4, 2010

All,

A first for The Money Tree blog.  I am posting a message on someone elses trade.  My investing buddy, Rich shared with me his INTC trade.   His results todate are superb.  Thus, I want to share them with you.

Rich’s strategy has been to sell OTM puts every month on INTC.  His objective is to use other people’s money to eventually buy INTC stock.  He started in January, buying 100 shares of INTC and then selling a CC against those shares.  From that point on Rich has been aggressively selling OTM puts, using the resulting cash flow to reduce his cost basis on his 100 shares.  As of today he has generated $1,867.25.  He only needs another $215.75 to own his 100 shares of INTC free and clear.  His rate of return on the average amount of invested capital used in selling the cash secured puts is 8.58%.  Below is a Rich’s complete INTC transaction history.

Way to go Rich!

Regards,

Troy

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