A recent article I wrote on trade ideas for Intel Stock received some questions. One of the questions from a member I thought would make an interesting article because it shows the differences between investing methodology, strategy and philosophy with investors. I get asked this question often especially about what appears to be a lot of risk and work for mere pennies. This article is open to all investors not just members because it is important to understand the methodology I use and the manner in which I approach my investing. Let’s start with the questions from the investor. You can review the Intel Stock trade ideas article here. I have opened that article to all investors as well.

Investor Questions: Intel Stock Trade Ideas

With all due respect I don’t get this trade idea especially for those who have no intention in taking the stock. All this risk and work for pennies? Please comment on the following 2 trades that were available today for a 60 cent credit for the May 9 (W) Expiration (17 days) Earnings for both stocks is behind them  
1)  CMG  508.92  price ,  Iron Condor 450/440 P- 565/575 C for a 60 cent credit, as example for 5 contracts  $300 credit, Margin requirement  $4,700=6% for 17 days
450 P delta (-6), 565 C delta 5, M/M(market maker ) expected move 27.402 ,so both strikes are better then 2 standard  deviation
2) NFLX 370.24 Iron Condor 315/305 P -430/440 C  also for a 60 cent credit
315 P delta (-6) 430 C delta 5, M/M expected move 27.32,again both Put and Call strikes are better then 2 standard deviation.
Would appreciate your comments – Michael.

This article is on the members’site but is open to all investors. You can select here to read the full article.

If you have an opinion or some knowledge on this topic please share it with others below. Select to read more investor questions.

Internal Stock and Option Trades Links

Portfolio Listing by Years

My Principal Stocks Index

Trade Ideas for Members

Trade Alerts for Members

Put Selling Strategies

Put Selling Strategies For Members

Covered Calls Strategies

Covered Calls Strategies For Members

Profit And Income Strategies Index

Stock and Option Strategies For Members

Stock And Option Trades Explained For Members

Ask A Question About A Trade You Are In

Sign My Guestbook

Visit My Shop

Join The Free Options Forum