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

To: Elmer Phud who wrote (178136)	5/26/2004 1:26:59 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

It is rather easy to prove/disprove. The number of options Intel awards each year is publicly disclosed. So is the number of shares the company buys back. If Intel consciously writes covered calls, those two numbers should closely correlate.

To: Elmer Phud who wrote (178136)	5/26/2004 4:39:09 PM
From: rkral	Read Replies (1) \| Respond to of 186894

OT .. elmerp, re "I don't know. How would you disprove it?" It's not my point, so the burden of proof is yours. Ron

To: Elmer Phud who wrote (178136)	5/26/2004 6:19:47 PM
From: Noel	Read Replies (2) \| Respond to of 186894

IOW, you think Intel is acting like a covered-call writer I doubt that it is true. But it is a good way of analyzing the situation. If Intel buys a share for every stock option issued then i) If the stock goes up, the cost to Intel is only the interest on the initial payment. This is offset by the tax benefit Intel gets by employees exercising options. Hence, the total cost is lower. ii) If the stock goes down, they still hold the shares. My only problem with scenario ii) is what about the the stock that was bought at ridiculous 00 prices?