The Money Tree

Safely Generating Income in Retirement

Archive for September 10th, 2012

New Trade – INTC

Posted by mounddweller on September 10, 2012

Fellow Traders,

Been awhile (again) since my last post.  Wanted to tell you a little about my latest trade today in INTC.  Today, I used the big 3% drop to sell naked puts (NP) at the next area of visible support, which in my view is at $22.  At the time of my trade INTC was trading at $23.34.  Here are the specifics of my trade:

STO 5 INTC OCT $22 puts at $0.30

This gives me a 1.36% ROIC with 40 days to expiration.

Below is a chart which shows why I think the next significant level of support is at $22.  Previously there was weaker support at $24 but with the recent downward forecast of full year revenue, this level has been broken.

My total INTC position now consists of 5 SEP puts at the $24 strike and these 5 OCT puts at the $22 strike.  My plan is to roll the SEP puts to NOV if they are ITM as expiration approaches.  If INTC bounces back above $24 after SEP expiration I will then look to buy back my OCT $22 puts.



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