Intel (INTC) has been getting hammered this week. They are suffering from bad management execution – with Advanced Micro Devices (AMD) eating their lunch right now and capturing market share.
- Bloomberg – AMD Is Officially Leaving Intel in the Dust
But with a solid balance sheet and great cash flow – I would not mind picking up a few shares of Intel if I can get them for under $40.00 per share.
To get the price I want – I made the following trade:
- Sold: Ten (10) December 18, 2020 Puts
- Strike Price: $40.00
- *Premium Collected: $900.00
If I am forced to buy the 1000 shares, my entry price will be approx. $39.10 per share – over a 44% discount to Intel’s Fair Value of $70.00 per share – providing a comfortable Margin of Safety. Intel also pays a nice 2.89% dividend, which is rare for a Technology Company.
*Excludes transaction costs.
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