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CARRY FORWARD FROM 2010 |
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4518.50 |
| Jan 7 11 |
20.35 |
Sold 10 out of the money puts Feb $19 @ .44
Comments: Today's sharp drop in Intel the
world's largest chip maker was perfect to try to gain a
little income, so I sold the Feb 19 out of the money put for .44. The lower
bollinger was broken today so we may see more selling, but
at $19.00 I know from the past that this is a good level to
be in naked puts on Intel corporation stock. |
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19.50 |
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19019.50 |
420.50 |
2.21 |
4939.00 |
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Jan 12 2011:
On
this pullback the Intel stock didn't fall below 20.00.
You can see the drop on Jan 7. Since then the
stock has moved to the upper bollinger but the
move higher is not confirmed by MACD.
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Jan 20 11 |
20.50 |
Sold 4 out of the money Puts Feb $20 @ .38
COMMENTS: I am sure my Jan sold puts will expire tomorrow but
the sharp drop today pushed volatility up and I sold
the Feb 20 naked put out of the money. |
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12.00 |
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8012.00 |
133.00 |
1.66 |
5072.00 |
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Jan 21 11 |
20.82 |
Expiry: 4 Naked Puts Jan 19 expired
COMMENTS: As expected these puts expired. |
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5072.00 |
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Feb 18 11 |
22.21 |
Expiry: 10 Naked Puts Feb 19 expired; 4 Naked Puts
Feb 20 expired. |
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5072.00 |
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Feb 18 2011:
On
this pullback Intel stock didn't fall below 20.00.
You can see the drop on Jan 7. Since then the
stock has moved to the upper bollinger but the
move higher is not confirmed by MACD. With such
a fast move to the upper bollinger in just 4
sessions, the uptrend has to be considered
suspect. But looking at the below chart, there
are many conflicting technicals to consider. The
stock has moved up like this before, as well the
general overall trend is up and MACD is
confirming the uptrend. I will wait a few days
and then decide what strike to sell next.
At
this point I am still holding Apr 20 and 22
naked puts from previous rolls. The April 22 put
was at one time an in the money put but with the
rise in Intel stock it has ended up out of the
money.
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Feb 23 11 |
21.15 |
Sold 10 out of the money puts 19Mar11 $19.00 @ .22 |
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19.50 |
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19019.50 |
200.50 |
1.05 |
5272.50 |
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Feb 23 2011:
Just two
sessions later and we have fallen back. There could be more
downside but I will sell the $19.00 put for March which I feel
is a good price point.
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Mar 18 11 |
19.93 |
Expiry: 10 Naked Puts 19Mar11 $19.00 expired |
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Mar 18 11 |
19.90 |
Sold 10 out of the money puts 16APR11 $19 @ .25 |
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19.50 |
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19019.50 |
230.50 |
1.21 |
5503.00 |
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Mar 18 2011:
Very nice
decline and now we have turned sideways. The trading range
for Intel continues. With the expiry of my March puts I have
sold the April 19 puts. Meanwhile I am still holding the
April $22 and $20 naked puts from late last year. Both of
these puts have not become in the money puts.
I will hold for a while and then roll
further out in time. For the April $22 in the money puts I will also do my
usual where I reduce the number of contracts being sold
after I buy back the 3 April $22 Naked Puts. Remember that this is
a roll out from originally 4 put contracts in October ($22) to 3
put contracts in April ($22) and now I will roll enough out to
reduce my contracts to 2 in the money put contracts.
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Apr 1 11 |
19.60 |
Sold 5 out of the money puts 21May11 $18 @ .25 |
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13.25 |
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9013.25 |
111.75 |
1.23 |
5614.75 |
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Apr 1 2011:
The great thing about selling puts is there
is always opportunity somewhere. Today Intel is
down again on concerns over the semi-conductor
industry, and I took advantage of the move
lower by selling the May $18 strike. I did just
5 naked puts as I am hoping it may move lower
and I can sell another 5 puts at the same
strike. The chart below shows Intel falling
today and pushing the oscillator with it.
However the oscillator is trending toward
oversold which I think may occur if it hits
19.00 which I feel is fair value for Intel stock. The
10-20-30 moving averages
strategy however is not indicating
any recovery soon although the downward spike
seen over the past few sessions has flattened
out a bit. Meanwhile I am not closing my Apr $19
puts yet. I want to keep them open as I kind of
doubt Intel can fall much through $19, if at all
over the next 2 weeks. If it gets low enough I
will be able to roll those 10 naked puts at $19
from April into May at the same put strike, for a great premium. Now
that will be exciting!
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Apr 4 11 |
19.55 |
Bought to close 5 in the money Naked Puts April $20 for .58 |
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13.25 |
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(303.25) |
(2.9) |
5311.50 |
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Apr 4 11 |
19.45 |
Sold 4 in the money puts May $20 for 1.10
NOTE THE REDUCTION IN NAKED PUTS FROM 5 TO 4 ON THIS
ROLL |
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12.00 |
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8012.00 |
428.00 |
5.34 |
5739.50 |
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Apr 4 11 |
19.55 |
Bought to close 3 in the money puts Apr $22 for 2.50 |
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10.75 |
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(760.75) |
(11.5) |
4978.75 |
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Apr 4 11 |
19.45 |
Sold 3 in the money puts $22 for 2.85
Comment: I had contemplated rolling further out and
reduce the number of put contracts from 3 to 2 as
per my comments above on April 1. However the roll
produced better than 1% for one more month out in
time. |
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10.75 |
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6610.75 |
844.25 |
12.77 |
5823.00 |
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Apr
4 2011:
Is It Time To Think More Aggressively About
Intel? The technicals on
INTEL show that the selling could continue but I
believe the big drop for the time being is over.
The oscillator is flat today while the stock is
down again today after Friday's big fall.
Looking at the stock it is probably near the
bottom of its trading range but it could slip
below $19.00 making the $18.00 naked put a
compelling sell for May. The 10-20-30 is showing
no bounce yet but also that selling has slowed
for now. This lack of selling is also supported
by the oscillator, momentum and MACD.
Therefore I feel pretty comfortable selling the
$18 strike naked puts for MAY.
Those who are more aggressive could consider the
$19.00 strike for April as they are picking up
1% for just two weeks of exposure and if they
are
assigned at $19 with April options expiry, they
will be eligible for the May 3 dividend of .18
cents or almost another 1%, and then sell a
covered call for May at the $19 or $20 strike.
I already have a lot of naked puts on Intel
including two sets that are in the money and
which I rolled today. I plan to hold and see if
Intel slips below that $19 strike. That
will be my entry point to sell more $18 naked
puts. Investors remain wary of Intel Stock and
analysts believe that the demand for processors
could be slower than expected. In particular
some analysts believe that Intel's Sandy Bridge
products are not stimulating demand and will
prove less profitable than Intel is forecasting.
But its operating cash flow is incredible with
10.9B in 2008, 11.2B in 2009 and a whopping
16.7B in 2010. That is an increase of 53% over
2008! If Intel should drift
below $19.00 it will be a compelling purchase
and I will be aggressively selling naked puts
and will probably consider in the money put
options.
POSITION UPDATE
With today's roll
from April to May I am now holding 4 in the
money May $20
naked puts, 3 May $22 in the money puts, 5 May $18
out of the money puts, 10 April $19 at the money puts
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April 14 11 |
19.45 |
Sold 5 out of the money Puts 21Apr11 $19.00 @ .21 (expired) |
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13.25 |
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9513.25 |
91.75 |
0.96 |
5914.75 |
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Apr 14 2011:
Here is Intel Corp Stock for today. The
news in the morning of the slower PC Sales
definitely hurt the tech stocks and Intel
followed all of them lower. However by 9:45 AM
the big selling was over and the rest of the day
the stock slowly rose and closed near the highs.
I sold 5 Naked puts for 21APR11 expiry at $19
strike as momentum stayed positive about half of
the day and the stock showed good strength in
the face of selling. Meanwhile though MACD at
the close did indicate that more selling could
come tomorrow. This is a 1 week trade for 1%.
Should the stock fall below 19 by then I will
roll further out and lower. Intel is one of
those stocks that I am pleased to stay with. It
is an enormous company, a world leader and it is
very well managed. With a book value of $8.97
and $2.93 cash flow, I tend to view weakness in
the stock as opportunity, but if you look at the
2010 trades you can see that this stock can fall
below 19.00 easily should more bad news arrive.
However I will be staying with Intel for a long
time yet.
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Apr 15 11 |
19.75 |
Expiry: 10 Naked Puts April 19 expired |
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Apr 15 11 |
19.60 |
Sold 5 at the money Puts May 19 @ .38
Comments: I only did 5 naked puts to start. Intel
may have a bit more downside and I want to have more
capital available to sell puts again in the next
week or two. |
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13.25 |
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9513.25 |
176.75 |
1.85 |
6091.50 |
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Apr 18 11 |
19.50 |
Sold
15 at the money puts May $19 @ .31
COMMENTS:
I just
keep watching Intel and today it hit 19.50 and I
just had to sell more May 21 $19 puts. At 1.5% and
with all the cash I have available, it just makes
sense. If the earnings are poor I can see the stock
falling to perhaps 18.50 which is 5%. At 18.50 I
would buy back the 19 puts and roll them out into
June or July. Honestly to me, Intel is so under
appreciated, but then that's what I look for - a
great company that is so under priced that I can
sell puts and just keep earning more income. I have
a large amount of capital available from Friday's
options expiry so selling 15 more naked puts here is
an easy choice. In two days my other Apr 21 naked
puts expire. I am convinced this is a good trade.
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25.75 |
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28,525.75 |
439.25 |
1.53 |
6530.75 |
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Apr 21 11 |
21.32 |
Expiry: 5 Naked Puts 21Apr11 $19 expired |
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Apr 21 11 |
21.32 |
Bought to close 5 Naked Puts 21May11 $18 @ .02 |
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13.25 |
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(23.25) |
(0.25) |
6507.50 |
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Apr 21 11 |
21.32 |
Bought to close 20 Naked Puts 21May11 $19 @ .04 |
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32.00 |
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(112.00) |
(0.29) |
6395.50 |
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Apr 21 11 |
21.32 |
Sold puts 10 contracts 21MAY11 $21 @ .38 |
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19.50 |
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21019.50 |
360.50 |
1.7 |
6756.00 |
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May 2 11 |
23.10 |
Bought to close 10 put contracts 21MAY11 $21 @ .11 |
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19.50 |
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(129.50) |
(0.61) |
6626.50 |
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May 20 11 |
23.22 |
May Options Expiry: 4 Naked Puts May 20 expired; 3
Naked Puts May 22 expired |
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May 20 2011:
Intel has had an exceptional month since
mid-April. I had been selling naked puts at the
19.00 and 20.00 strike but with this rise all my
previous naked puts that were in the money puts
ended up out of the money and are
now expired. Intel has a terrific future and
with the news from Goldman that they have
advised investors to sell their shares in Intel,
the resulting weakness allowed me to sell 5 naked puts and I will wait for
further pullbacks to add to my position.
The May options
expiry also shows the value of staying with a
trade even when the naked puts I have sold get
caught in the money. But staying ahead of expiry
and continuing to roll further out, reduce the
number of contracts with each subsequent roll
and roll either at the same strike further out
or further out and down, eventually the stock
often will run up and past my naked put
positions, putting those positions that were
once in the money puts now out of the money puts. This was
the case this month when my May $21 and $22
put strikes ended up out of the money.
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May 20 11 |
23.18 |
Sold puts 5 contracts 16JUL11 $21 @ .23 |
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13.25 |
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10513.25 |
101.75 |
0.96 |
6728.25 |
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May 31 2011:
Intel Stock has moved down from its recent
high of $23.96. The announced by Goldman Sachs
on May 19, advising to sell Intel commenced the
downturn in the stock. The move down is obvious
in the 6 month chart below. Interesting the
influence brokerages have on stock. Do you think
Goldman is buying at these levels? Do you think
perhaps they held puts on Intel?
The move down has
allowed me to sell more puts at the $21 strike
at the $20 strike. I have a lot of capital which
I can still place and with June options expiry
just two weeks away, I am going to have a lot
more capital to invest.
$21.00 is an
excellent price to sell for premium. If Intel
stock slips below $21.00 then I can consider the
$20 strike or sell in the money put options at
the $21.00 strike. I have marked the second sell
point of $20.00 on the 6 month chart below.
Intel throughout much of the past year flirted
back and forth over the $20.00 strike making for
a compelling case of selling that put.
Meanwhile on Friday,
the stock continued to sell and came close to
falling below $22.00. At this morning's open I
sold more puts spreading myself out between the
$20 and $21 strikes into August. The oscillator
by today's close is turning back up and MACD
with a divergence of just -0.05 could be
signaling a move back up in Intel Stock. .
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May 31 11 |
22.38 |
Sold 5 out of the money puts 20AUG11 $21 @ .56 |
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13.25 |
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10513.25 |
266.75 |
2.5% |
6995.00 |
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May 31 11 |
22.38 |
Sold 5 out of the money puts 20AUG11 $20 @ .32 |
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13.25 |
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10013.25 |
146.75 |
1.4% |
7141.75 |
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Jul 15 11 |
22.37 |
Expiry: 5 Puts 16JUL11 expired |
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AUG 4 2011:
Today's stock market collapse finally
caught up to the tech stocks and Intel fell
right along with the market. I figured after
yesterday it would happen today and I bought
back my puts early in the day, so there was
still a profit in both the August 20 and August
21 puts I had sold.
Today Intel fell
4.40% and easily sliced through the 200 day
moving average. I believe a rally may be in
order and I will sell naked calls on Intel.
After that I think the stock could be headed to
$18.00
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Aug 4 11 |
21.65 |
Bought to close 5 puts 20AUG11 $21 at .37 |
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13.25 |
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(198.25) |
(1.8) |
6943.50 |
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Aug 4 11 |
21.65 |
Bought to close 5 puts 20AUG11 $20 at .18 |
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13.25 |
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(103.25) |
(1.0) |
6840.25 |
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Sep 6 11 |
19.55 |
Sold 5 Puts 22OCT11 $16 @ .20 |
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13.25 |
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8013.25 |
86.75 |
1.08 |
6927.00 |
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Oct 21 11 |
24.03 |
Expiry: 5 Oct $16 puts expired |
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Nov 9 11 |
23.80 |
Sold 10 naked Puts 17DEC11 $21 @ .20 |
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19.50 |
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21019.50 |
180.50 |
0.95 |
7107.50 |
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Nov 25 11 |
22.70 |
Bought 1000 shares @ $22.70 |
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7.00 |
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22707.00 |
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Nov 29 11 |
23.75 |
Sold 1000 shares @ $23.75 |
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7.00 |
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1036.00 |
4.5 |
8143.50 |
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Dec 16 11 |
23.23 |
Expiry: 10 Naked Puts Dec $21 expired |
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Dec 16 11 |
23.25 |
Sold 10 Naked Puts 21JAN12 $21 @ .24 |
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19.50 |
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21019.50 |
220.50 |
1.0 |
8364.00 |
