Options Trade – Intel Corp (INTC)

I keep catching falling knives in this market – hopefully todays trade will not follow that trend. If it does keep falling, I believe the market is finally presenting some value – so folks with a longer time horizon will be rewarded. I wanted to dabble in Intel anyway – I feel the US Government is providing a backstop for the microprocessor industry – and this would be a nice entry point (52 week low).

Here is the trade:

• Sold: 10 Oct 21, 2022 Puts
• Strike Price: $27.00
• Premium Collected: $743.36

If I am forced to buy the 1000 shares, my entry price will be about $25.26 per share – over a 47% discount to INTCs Morningstar Fair Value of $50.00 per share – providing a very comfortable Margin of Safety.  INTCs dividend is over 5% – which works for me. If I am forced to buy the shares, I can sell calls on those shares and still collect the large quarterly dividend paid on Dec. 1st, 2022.

Not a safe market to be selling puts in – do your research and be careful out there.