Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 48.26

-0.7%

Feb 5 3:59 PM EST

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To: Richard Halberstein who wrote (9666)	1/30/1997 10:28:00 PM
From: jmac	of 186894

Ok, let's check this out. IBM's position in the market. OK. Money that might leave IBM might go to INTC. OK. The market is long overdue for a correction. OK. No problem. Stated Goal: try to figure out a strategy to prtoect the profits that you have in INTC. If you think IBM may go down, you buy puts on IBM. If you think the market is going to correct, you buy S & P 100 puts. if you are trying to protect a position and profit in INTC, you sell INTC calls or buy INTC puts. You may be long on INTC and short on IBM, but you are not short IBM as insurance on your INTC. The trade was successful and there were many traders who bought IBM puts before earning's release (probably as many as those who bought calls) and were rewarded handsomely. But as insurance for INTC, IBM puts is not a candidate. As someone else just posted, if you bought the IBM puts as insurance on INTC, then you made a lot of money for the wrong reasons. Think about that.

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