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Technology Stocks : Intel Corporation (INTC)
INTC 40.56+10.2%Nov 28 9:30 AM EST
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To: Elmer who wrote (123950)1/4/2001 1:30:08 PM
From: Hightechhooper  Read Replies (4) of 186894
 
Elmer & anyone with option experience,

I sold Jaunuary 37.5's today for 1 1/4. As I have mentioned, I really wanted to sell the 40's for $1 or more but I took a risk on the 37.5's because it looks like the net open interest on January calls and puts would imply a close in the 32 1/2 to 35 range. I know this type of evaluation is not a science but INTC has typically closed on expiration within 5% of this implied range. I really wanted to wait until tomorrow (after the employment report) to write them but I needed to get at least $1 for them to help my margin situation and I couldn't risk writing for a strike lower than 37.5 if the employment report generates a selloff. It could just as easily cause a rally but it seems INTC's Q1 outlook, combined with the ANALysts cutting 2001 estimates would bring the price back down after the upcoming conference call.

I am now in the strange position of hoping INTC moves up, but only a little in the next couple of weeks. The last thing I want to do is lose my stock. I am so optimistic about INTC's business outlook once the P4 is in full ramp and the economy begins growing again.

I will write a few more contracts tomorrow after the employment report and a few more next Tuesday after Chambers speaks at that analyst conference, but 90% of my shares are already written against.

So did I screw up or will I be able to keep my shares? I don't like the feeling of betting against INTC but if I can view it as a way of collecting a dividend on shares I want to keep then I can justify it I guess. All comments are welcome.

Thanks,
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