Intel Stock put selling this year has earned $7148.00. Since commencing put selling in 2011 against Intel Stock I have earned 15512.00 so you can see that put selling in 2012 has returned almost double the last two years combined. This is partly because I have committed more capital to my Intel Stock put selling trades in 2012 but also because the rise in Intel Stock has pushed up volatility and made put selling income a lot more attractive this year.
Throughout my Intel Stock trades in 2012 I have only done put selling. There have been no swing trades or naked calls. It has all been put selling and the profits have been quite lucrative. Over the past 7 trading sessions, Intel Stock has pulled back. While volume is nothing to be concerned about in this latest pullback, I managed today to do some put selling in Intel Stock as I work towards my goal for September and October.
I have written many times about the importance of having a plan and setting goals. But also the importance of having a strategy, no matter how simple, is equally paramount to the success of trading options.
This fall I will be committing more capital to my Intel Stock Put Selling as I believe the stock is still undervalued here and could rise back to the $27.00 level quite easily if buying continues in the market. Putting together a Put Selling plan or a goal does not have to be difficult.
Let’s look at the trades done in Intel Stock and what I am expecting next.
Put Selling and Intel Stock Chart
The past 3 months of Intel Stock can be seen in the chart below. In June Intel Stock made a higher high and then two lower lows into July. It then rallies higher in early August and has drifted lower ever since. The most important line in the Intel Stock trade is the $25 put strike. The $25 valuation for Intel Stock has been repeatedly tested since May and it has not been broken.
The Ultimate Oscillator shows there is plenty of room for Intel Stock to fall lower and the Fast Stochastic is continuing short-term bearish. The stock today hit the middle band of the Bollinger technical timing tool.
Intel Stock has been excellent for put selling since January.
Intel Stock Short-term Put Selling Strategy
The strategy for the next few trading sessions is to sell smaller quantities of the $26 and $26 put strike. I am expecting the stock to break through the middle Bollinger band and fall lower, possibly even touching the $25 strike.
However on the way down I am going to turn to margin to boost my return in Intel Stock if it can fall back to $25.50. Here will be the goal:
Intel Stock currently at $26.00 / Sold 5 naked Puts Sept $26 and 10 naked Puts Oct $25
The Intel Stock naked puts at $26 earned .48 cents or almost 2%. The October $25 naked puts earned 1% a month.
Intel Stock falls to $25.50 / Sell 5 more naked puts Sept $26 and 5 Sept $25.
Sell 10 Oct $24 naked puts with margin. Sell 10 Sept $24 naked puts with margin if there is enough premium. I would like to earn at least half a percent if possible.
Intel Stock falls to $25.00 / Sell 10 Sept $25 and 5 Oct $25 naked puts.
Sell the $24 Intel Stock naked puts with margin into both September and Oct depending on premiums available.
Intel Stock Put Sell Strategy Summary
This is a very simple Put Selling trade for Intel Stock, but then my Put Selling for Intel Stock has been incredibly simple all this year and very profitable. I would like to use some margin this month is possible and Intel Stock is strong enough that I would not be concerned putting margin to work at the $24 strike for September and October through Put Selling against Intel Stock.
Review my Intel Stock trades from today and for the 2012 year