Intel: Short Term Stock and Option Trading/Strategies Message Board

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Technology Stocks : Intel: Short Term Stock and Option Trading/Strategies

INTC 38.16

+2.5%

Nov 7 9:30 AM EST

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To: Nancy who wrote (25)	3/10/1997 10:32:00 PM
From: Jim Lass	of 220

Nancy, It's amazing, I know quite a few people who are into covered call writing, and yet I've never seen the same strategy twice! My strategy in protecting my long intc is to write at-the-money covered calls but one month out. I usually opt to write OTM calls in the current month. My reason being that I don't have any intention of letting my shares get called and the premium erodes much quicker at the end of the calendar curve. Also, although premiums for the next month out look inviting, there really is a much greater risk when you have to hold a call for 6-8 weeks. An earnings month like April is especially dicey due to the fact that implied volatility will start to expand once the earnings report date gets closer. Writing Apr gives me more time to take in the time prem since even INTC close at/above 150 this cycle it wont get called out. Ah, one thing I learned the hard way was to roll up as soon as my OTM calls became ITM calls. You didn't mention if you are okay with letting some of your shares get called. How do you handle the situation where INTC goes past the strike price and then just keeps going? I use the same sell naked put strategy on stocks I dont mind to own in case it is put to me. I agree, I'm surprised more people don't do this. I can't see how you can lose if you would have been a buyer at that price anyways. Of course, I would only do this on a stock that had consistent fundamentals. <Like to hear from you how you play DELL, CDN & AMD - these are stocks I dont mind being put at too. DELL, I try and play like INTC, but I've let it alone for a while since I missed the big run-up. At some point, I will start selling puts on it hoping to get put. I work for CCT which was just bought by CDN. I often sell calls against the CCT shares that I own, but I don't sell puts as I get enough shares through the different company plans. On AMD I have a long position that I am currently riding upwards. I'm staying away for covered calls on this one as I believe that there may be some good upside ahead in the near future. Best of luck to you... Jim

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