Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 36.58

+2.2%

10:03 AM EST

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To: Jacob Snyder who wrote (110851)	9/22/2000 3:41:12 PM
From: Sam Citron	Read Replies (3) of 186894

Jacob, I sold naked Jan 2003 INTC 40 LEAP puts at 7 today. I tend to look at surprises like we had yesterday as opportunities. Here's my reasoning: The way I figure it is that my breakeven is 33% below today's depressed price, a price from which Ashok Kumar is considering upgrading the stock. If push comes to shove, I will be happy to acquire INTC at $33 for a long-term investment. I doubt that the PC is dead, and in selling LEAP puts, I am not paying anything for INTC's historical growth since such growth is not priced into normal Black-Scholes option pricing formula, since LEAPS didn't exist when the formula was invented. Furthermore, the position doesn't tie up capital, as it results in an infusion of cash into my brokerage account, although technically there is an opportunity cost in tying up margin buying power availability. Hope this helps. Sam

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