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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

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



To: Jacob Snyder who wrote (110851)9/22/2000 9:34:58 PM
From: nihil  Read Replies (1) | Respond to of 186894
 
There is no value basis for buying INTC, CSCO, SUNW, AMAT or any of those stocks. They are purely speculative, full of air. I think there good support for INTC at about $3 (because of its cash and investments), but nevertheless I am selling everything else and buying lots of Intel as it gets cheaper. It seems they can manufacture IC's and MPU's. I think there is a good market for these. I think they will sell. I'm not sure about anything else.


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