John,
As I posted, I also started buying INTC Calls last week because I perceived an overly negative reaction, by the Street, to INTC's Q3 earnings. However, I only bought a partial position, pending the outcome of today's IBM earnings. There is a good chance, in my opinion, that IBM's quality of earnings will disappoint, and this could precipitate a further decline in the whole market. I have posted my reasons for believing that IBM's earnings have been of poor quality for the last two quarters, and the fact that IBM insiders sold large blocks of stock in Q3, supports my position.
Therefore, if INTC is dragged down by a further decline in the market, it is my intent to commit more funds to buy INTC, or its derivatives, at even lower levels. However, I realize that I may be in a very different position than newcomers to INTC. Because I have been in Intel for many years, I have the luxury of large profits to support my purchase. In addition I have a large position in IBM Puts to protect me from IBM pulling the whole market down. But make no mistake, I still believe that Intel is the best investment for me for the long term, given its current risk/reward ratio.
As always, I reserve the right to change my mind at any time, or be completely wrong in my opinions.
Good Luck,
Jules |
