Intel Stock has been in my online portfolio since 2010. Intel Stock symbol is INTC. Intel Stock trades on the NASDAQ and it needs no introduction. It is widely held by institutional and retail investors alike for good reason. Not only is the annual dividend attractive at 90 cents but the company is extremely well-managed and holds an immense control on the micro-chip market. Now moving into the mobile chip market, Intel is fast becoming a player in almost every aspect of communications and technology equipment..
Last year in 2012 the returns in Intel Stock were spectacular until September 2012 when the stock enter a severe pullback which left many of my naked put positions in the money and trapped about $100,000 of my capital into in the money naked puts. Despite this the returns were still just over 10%. I am not interested in owning stock at this point however if the stock should be assigned at the in the money naked put strikes I am holding, I have no doubts that holding the stock will work into an excellent trade.
Intel Stock Daily Chart in 2012
In 2012 the stock collapsed in the late summer and throughout the fall. In April the stock hit a high of $29.27 and then entered a bear stage as the stock direction fell until hitting a low of $19.42 in November. This marked a 33.6% loss from the intraday high to the intraday low. This collapse left me holding nasked puts as high as $26. I have been caught with deep in the money options in the past on other stocks as well. You can review the strategy below to see how I will work these in the money puts into a profitable position again in 2013.
Intel Stock (INTC Stock) Investment Strategy For 2013
With so many naked puts caught in the money when Intel Stock collapsed I will be splitting my strategy in three ways. First I will be working to reduce the number of put contracts caught in the money. You can review the various trades below and watch how this occurs as each time I roll I will reduce the number of put contracts. Second I will be continuing to sell puts out of the money which not only brings in further income and keeps the trade profitable but also reduces the break-even point of those naked puts that are deep in the money. Third I will be using the Bollinger Bands Strategy Trade which you can review through this article for trading the stock when I believe it is on the verge of a bounce back. Between these three strategies I am expecting better returns in 2013 than I ended up with in 2012. As well I do expect Intel Stock will recover.
Intel Stock (INTC Stock) Trades For 2013 – Year 4
|Intel Stock (INTC Stock) TRADE STATS:
Capital Currently In Use: $49,192.00
Income Earned in 2013: $6999.00
Total Income Earned Since Trade Started In 2010: $30226.75
Total Of My Own Capital Required If All Naked Puts Were Assigned: $18,965.25
Number of Shares If All Naked Puts Were Assigned: 2700
Share Price Valuation(Total Capital Required/Number of shares): $7.02
|REVIEW PRIOR YEARS:|
|Review Intel Stock Trades For 2013|
|Review Intel Stock Trades For 2012|
|Review Intel Stock Trades For 2011|
|Review Intel Stock Trades For 2010|
|Review All Portfolios for US Stocks|
|Review All Portfolios for Canada Stocks|
|Review All Retirement Portfolios|
|SELECT TO REVIEW ALL MY STOCKS|
|Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
Commission is $1.00 per option contract plus $5.00 per trade
|Sep 21 2012
||23.18||Sept Options Expiry: Sold 4 Intel Stock 19JAN13 $25 naked puts at $2.55 (This is a roll from September to Jan) (Status: These 4 naked puts were bought back Jan 16 for $3.05 and 3 naked puts were then sold into July at $25 – see Jan 16 2013 below for more details) This trade is now ended.
|Sep 21 2012||23.17||Sept Options Expiry: Sold 2 Intel Stock 20APR13 $24 naked puts at $2.43 (This is a roll from Oct to April) (Status: BTC Apr 15 2013 for $2.40 and rolled to Oct)||9.50||4809.50||476.50|
|Sep 21 2012||23.17||Sept Options Expiry: Sold 2 Intel Stock 19JAN13 $22.50 naked puts at $1.07 (This is a roll from Oct to Jan) (Status: Jan 17 2013 – with just 1 day to options expiry Intel Stock moved to $23.00 and I bought to close these 2 naked puts for .30 cents – this ended this trade – see Jan 17 2013 below for more details) This trade is now ended.||9.50||4509.50||204.50|
|Oct 9 2012||22.00||Sell To Open (STO) 9 Naked Puts 19JAN13 $25.00 put strike for $3.50 (status: these naked puts were combined with the trade done on Sep 21 (see above) when I sold 4 naked puts.
This trade ended on January 16 – see below – when I BTC the 9 naked puts and then rolled into July but reduced the number of put contracts at risk of assignment.) This trade is now ended.
|Oct 9 2012||22.00||Sell To Open (STO) 8 Naked Puts 20APR13 $24 put strike for $3.10 (Status: BTC :Apr 15 2013 for $2.40 – sold again for Oct at $3.33)||13.00||19213.00||2467.00|
|Nov 2 2012||22.20||Sell To Open (STO)7 Intel Stock 20JUL13 $26 naked puts for $4.95 (status: BTC Jun 19 2013 for .98)
Comments: This roll out reduced the number of naked puts at the $26 value by 2 releasing $5200 of capital.
|Nov 30 2012||19.50||Sell To Open (STO) 3 naked puts Intel Stock 18JAN14 $15 put strike for $1.75 (Status: BTC Aug 27 for 8 cents)
|Dec 21 2012
||20.60||Sell To Open (STO) 7 Intel Stock naked puts 16FEB13 $23 for $2.75 (Status: 700 shares were assigned Feb 5 2012 – see Feb 5 below)||12.00||16112.00||1913.00|
|Dec 21 2012||20.60||Sell to Open (STO) 5 Intel Stock naked puts 19JAN13 $21 put strike for .90 (BTC January 17 for .05 cents)||10.00||10510.00||440.00|
|Dec 21 2012||20.60||Sell To Open (STO) 5 Intel Stock naked puts 19JAN13 $20 put strike for .40 (status: expired)||10.00||10510.00||190.00|
|Dec 28 2012||20.27||Sell To Open (STO) 5 naked puts Intel Stock 19JAN13 $21 put strike for $1.00 (BTC January 17 for .05 cents)||10.00||10510.00||490.00||23227.75|
|Total Income earned to the end of 2012||23227.75|
|The above are the remaining trades from 2012. You can see that quite a number got caught in the downturn of Intel Stock. You can review Intel Stock 2012 Trades through this link. Total capital earned in 2012 = $14863.75 / $136,228.00 capital in use = 10.9% return
2013 Should be an interesting year to see how this trade progresses particular as I am holding so many in the money naked puts.
|All Intel Stock Trades Below Are in 2013
Commission $1.00 per contract + $5.00 per trade
|Jan 16||21.95||Sell To Open (STO) 5 Intel Stock 20JUL13 $25 put strike naked puts for $3.70 (status: BTC June 19 for .43)
|Jan 16||21.95||Sell To Open (STO) 5 Intel Stock 18JAN14 $25 put strike naked puts for $4.20 (status: BTC Jun 19 for .43)
|Jan 16||22.10||Buy To Close (BTC) 13 Intel Stock 19JAN13 $25 put strike naked puts for $3.05
COMMENTS: This is the closing of my Sep 21 Put Selling of 4 naked put for Jan at $25 and my Put Selling trade from Oct 9 when I sold 9 naked puts for Jan at $25. I have combined those two trades here and Buy To Close (BTC) 13 put contracts in total. I already have sold into July at the $25 strike
|Jan 16||22.10||Sell To Open (STO) Put Selling 5 Intel Stock Naked Puts 16MAR13 $21 Strike for $.35 (Status: expired)||10.00||10510.00||165.00||23340.75|
|COMMENTS: The above four trades were to roll from 13 naked puts at $25 that will expire on Jan 18 out to July at $25 and Jan 2014 at $25 but reduce from 13 naked puts down to 10 naked puts. The cost to roll was a net debit of $52. To make up the net debit I sold 4 naked puts for March16 options expiry. Here are the calculations:On August 22 2012 I had sold 5 naked puts for September 22 options expiry at the $25 strike. I made $126.75 when I sold these puts.
On Sept 21 2012 I bought back these 5 naked puts for $1.85 and sold 4 naked puts into January for $1008.00. After commissions I made $69.75, but this reduced my exposure from 5 naked puts to 4 naked puts and released $2500 of capital from having to secure that extra naked put.Oct 9 2012 I bought back 10 naked puts for Oct expiry at the $25 strike and sold 9 naked puts at the $25 strike for January 2013. I made $71 on the roll and reduced my exposure from 10 naked puts to 9 naked puts and released $2500 of capital from having to secure the extra naked put.
Now as of Jan 16 these naked puts will be assigned unless I roll them. Today then I bought back the 13 naked puts for $3.05 and sold 5naked puts for July expiry at the same strike, namely $25 for $3.70 and sold 5 naked puts for January 2014 $25 put strike for $4.20. This reduced the number of naked puts from 13 down to 10 and released $7500 of capital from having to secure the 3 additional naked puts. This also left a net debit after the roll out for $52.00. To cover that net debt I sold 4 naked puts for March 16 options expiry at the $21 put strike for .35 cents. This made $131.00. The net credit on this total trade after commission then was $79.00.This roll out reduces my put strikes at $25 from 13 down to 10 and releases another $7500.00. In total then I have released $12500 of capital which is being used to help secure the 5 naked puts at the $21 strike for March. The total capital in use on the 5 naked puts at $21 for March is $10510.00, all of which is covered by the capital I have now released.If by chance I was assigned on the 10 naked puts at $25 and now the 5 naked puts at $21, the total capital in use would be $35510.00 which when divided by 1500 shares would mean a cost basis of $23.67. You can see then that I am lowering my cost basis by continually reducing the number of naked puts that are in the money with each roll and increasing the number of naked puts that are out of the money. I have used this strategy for many years but I only use it on stocks that I would own if assigned.
|Jan 17||23.00||Buy To Close (BTC) 2 Intel Stock 19JAN13 $22.50 naked puts at $.35
Comments: This ends a Put Selling trade that started back in 2012. I ended up with just 2 naked puts contracts to expire in January at $22.50 which I sold on Sept 21 for $1.07. This locks in the profit of $144.00 and releases $4500.00 in capital.Now when I add in this $4500 of capital with the $5000 released from the above trade you can see that I am reusing my original capital which is now at $9500.00 to help secure the $10510.00 needed for the 5 naked puts I sold for March 16 expiry at $21 which I did yesterday.
|Jan 17||23.00||Buy To Close (BTC) 10 Intel Stock 19JAN13 $21.00 naked puts at $.05||15.00||(65.00)||23198.75|
|Jan 18||21.25||January options expiry: I closed the $21 strikes yesterday for 5 cents with Intel stock at $23.00. I also closed the $22.50 yesterday for .35 cents. This is why I believe closing trades for pennies often works. Today the $22.50 trade would either be assigned or I would have to roll the trade for $1.30 at the close. A far cry from the .35 cents yesterday and this would have meant another rolling exercise. It is always worthwhile when a stock is volatile to take advantage of a rise even as close as the day before to close for a small amount and lock in the profit which I made yesterday. Today would have been a loss.Jan $20 naked puts expired: My $20 strike puts expired and I saw no need to close these as the stock yesterday was up to $23.00 and a decline to $20 would have meant a collapse of 13% which, while not uncommon, is not all that common in Intel Stock.With January options expiry I have now released $31,000 in additional capitalf or more Put Selling out of the money on Intel Stock. This will go a long way to help reduce the break-even of those stocks that are still in the money.||23198.75|
|Feb 5||23.00||700 shares assigned at $23.00.
Comments: The dividend is today and it was a choice of either rolling the naked puts again or accepting some shares or splitting this position. I have made over $23,000 since starting into Put Selling in 2010. I believe with the stock at the present level of $21.30, the $23.00 should provide some income going forward and I will be exercised out at some point I think before the summer.
|Feb 7||20.80||Sell To Open (STO) Put Selling 20 Intel Stock Naked Puts 16MAR13 $20 Strike for $.40
Comments: With the extra $31,000 in freed up capital, I will be using every opportunity to sell larger quantities of naked puts as Intel Stock certainly looks ready to bottom here. If I was assigned on this many shares I would sell covered calls on half of the position out of the money and half covered calls in the money to be exercised out of some of these shares and then return back to more Put Selling. I like Intel Stock at this level and will pick up some stock at some point as well. (Status: expired)
|Feb 22||20.25||Sell To Open (STO) Put Selling 20 Intel Stock Naked Puts 16MAR13 $20 Strike for $.45
Comments with the stock now pushing back to $20 I am placing another $40,000 at risk in Intel Stock. I am confident looking at the stock that it will hold the $20.00 level and if not I will use the above strategy as explained on Feb 7. Having 4000 shares of Intel Stock will not concern me. (Status: expired)
|Feb 25||20.35||Bought 1000 shares of Intel Stock at $20.35. I am using the Bollinger Bands Strategy Trade for this trade.
Comments: This now provides me with 1700 shares and reduces my cost basis from $23.00 to $21.46.
Intel Stock looks ready to bounce higher here.
|Mar 8||21.90||Sold 1700 shares of Intel Stock at $21.90. The end of this Bollinger Bands Strategy Trade as Intel Stock has reached the Upper Bollinger Band and is now pulling back. It may continue higher but all the signs of the pull back are in place so it is prudent to take my profit and close this trade. This releases all the stock being held and ends the trade with me holding no shares.||5.00||0||37225.00||750.00||25598.75|
|Mar 15||21.38||March Options Expiry: $21 and $20 strikes – naked puts expired|
|Mar 26||21.35||Sell To Open (STO) Put Selling 10 Intel Stock Naked Puts 20APR13 $21 Strike for $.33 (status: expired)
Comments: Here is the trade alert on this trade.
|Mar 26||21.35||Bought 20 calls Intel Stock 18MAY13 $23 call strike for .11 cents||25.00||(245.00)|
|Mar 26||21.35||Sell To Open (STO) Put Selling 25 Intel Stock Naked Puts 18MAY13 $19 Strike for $.11
Comments: This pays for the May 18 calls. To understand this March 26 trade of my buying calls and selling the same quantities of naked puts please read this article. THIS IS ALL MARGIN IN THIS PUT SELLING.
|Mar 26||21.35||Bought 1000 shares of Intel Stock for $21.35 (sold Mar 28 for $21.85)
|Mar 28||21.90||Sold 20 Calls Intel Stock 18MAY13 $23 call strike for .21 cents||25.00||395.00||150.00||26338.75|
|Mar 28||21.90||Buy To Close (BTC) Intel Stock 25 naked puts 18MAY13 for .08 cents
Comments: After reviewing the trade I feel that using $47530 of margin is not the best use of the capital to secure this trade. Instead I would rather use half that much and hold 1000 shares of stock which I think will provide a bigger income. I therefore closed that portion of the trade today.
|Mar 28||21.85||Sold 1000 shares of Intel Stock – ending latest Bollinger Bands Strategy Trade||5.00||0||21845.00||490.00||27058.75|
|Apr 8||20.85||Bought 500 shares Intel Stock for $20.85||5.00||500||(10430.00)|
|Apr 8||20.85||Apr 8 2013 – (STO) Put Selling 5 Naked Puts 18MAY13 $20.00 put strike for $0.36 (status: expired)
|Apr 15||21.68||Sold 500 shares Intel Stock for $21.68||5.00||0||10835.00||405.00||28153.75|
|Apr 15||21.68||BTC 10 Naked Puts Intel Stock $24 strike for $2.40||15.00||(2415.00)||25738.75|
|Apr 15||21.40||STO 7 naked Puts Intel Stock 20July13 $24 strike for $3.33 – (This is a roll out and a reduction from 10 to 7 – then the 5 below cover the cost to sell just 7. (BTC Jul 19 for .98 to roll down)
|Apr 15||21.39||STO 5 naked puts Intel Stock April $21 strike for $0.28 (status: expired)
|Apr 19||22.44||April Options Expiry: $21 naked puts expired|
|May 17||24.04||May Options Expiry: $20 naked puts expired|
|May 22||24.00||STO 10 naked Puts Intel Stock 22JUN13 $23 strike for $0.22 (status: closed June 17 for .01)
|Jun 17||25.20||STO 10 naked Puts Intel Stock 20JUL13 $24 strike for $0.36 (BTC Jul 19 for .98 to roll down)
Comment: Review this trade alert
|Jun 17||25.20||BTC 10 Naked Puts Intel Stock 22JUN13 $23 for .01||15.00||(25.00)||28712.75|
|Jun 19||25.50||BTC 7 Intel Stock 20JUL13 $26 naked puts for $.98
Comments: This is a BTC for Nov 2 2012 which was a rolldown when I sold 7 July $26 naked puts for $4.95. (see above for Nov 2 2012)
|Jun 19||25.50||BTC 10 Intel Stock 20JUL13 $25 naked puts for .43
Comments: This is a BTC for Jan 16 2013 when I sold the July $25 for $3.70 and $4.20 – see Jan 16 above for sell details.
|Jun 25||23.70||STO 10 naked puts Intel Stock 17AUG13 $23.00 put strike for .62||15.00||23015.00||605.00||28174.75|
|Jul 19||23.10||July Options Expiry: BTC 17 naked puts July $24 put strike for .98||22.00||(1688.00)||26486.75|
|July 19||22.90||July Options Expiry: STO 10 naked puts 21September13 $24 put strike for $1.60 (Comments: This is a roll being done where I closed 17 naked puts for July for .98 cents and then sold 10 for September at $1.60 and the Aug $22 put strikes for .29 cents. Total cost to close was $1688 on the buy back for July $24 puts and total income made was $1860.00 for a profit of $172 on this roll. Additional capital was used on the roll at the $22 strike.
Total capital being used for the July $24 puts was $40,800. – Total capital being used for the roll was $46,800.00 – or $6000 more. If assigned on all positions my average is stock price would be $23, less income earned) (Status: BTC Sep 20 for .20 cents)
UPDATE: AUGUST 27
3 naked puts moved from September to April 2014 for a gain of $359.00 – See August 27 below
Now holding just 7 put contracts for September 21 expiry
|Jul 19||22.90||July Options Expiry: STO 10 naked puts August 17 $22 put strike for $.29 (Status: BTC Aug 14 for 8 cents)
|Aug 14||22.70||Buy To Close (BTC) 10 naked puts August 17 $22 put strike for .08
Comments: 2 days to expiry and for 8 cents this trade is worth closing.
|Aug 27||22.02||STO 4 naked puts Intel Stock 19OCT13 $21.00 put strike for .44 (status: BTC Oct 14 for 2 cents)
|Aug 27||22.02||BTC 3 naked puts 18JAN14 $15 put strike for 8 cents
Comments: Sold these puts on Nov 30 for $1.75. Total return was 11% in 9 months. More than 1% a month.
|Aug 27||22.02||STO 4 naked puts Intel Stock 17JAN15 $18 for $1.21||9.00||7209.00||475.00||28861.75|
|Aug 27||22.20||Buy To Close (BTC) 3 naked puts 21SEP13 $24 for $1.85
Comments: This moves 3 naked puts from September to April 2014
|Aug 27||22.02||Sell To Open (STO) Put Selling 3 Intel Stock Naked Puts 19APR14 $24 Strike for $3.10||8.00||7208.00||922.00||29220.75|
|Sep 20||23.85||Sept Options Expiry: Buy to close (BTC) 7 naked puts Sep $24 put strike for .20 cents||12.00||(152.00)||29068.75|
|Oct 9||22.55||Sell To Open (STO) Put Selling 5 Intel Stock Naked Puts 16NOV13 $22 Strike for $.31 (status: expired)
|Oct 9||22.55||Sell To Open (STO) Put Selling 5 Intel Stock Naked Puts 16NOV13 $23 Strike for $.69 (status: expired)
|Oct 14||23.35||Buy To Close (BTC) 4 Intel Stock 19OCT13 $21 naked puts for .02||9.00||(17.00)||29531.75|
|Oct 31||Comments On rise in Intel Stock and possibility of using covered calls.|
|Nov 15||24.52||Nov Options expiry: all naked puts at $22 and $23 expired|
|Nov 16||Article studying dealing with in the money naked puts strategies to repair a trade.|
|Nov 22||23.93||Sell to Open 5 Naked Puts Intel Stock for 18JAN14 $23 put strike for 0.40
Comments: Trade alert on this trade is here.
Article discussing the collapse in Intel Stock and the cash cushion strategy.
|Nov 25||23.59||Sell to Open 5 Naked puts Intel Stock for 18JAN14 $23 for $.51
Comments: Following the cash cushion strategy this is the second group of 5 naked puts at 25% more in put premium than what I earned on Nov 22.
|Dec 3||23.50||Sell to Open 5 Naked Puts Intel Stock 10JAN14 $23 for .54||10.00||11510.00||260.00||30226.75|
|Dec 3||23.50||Bought 500 shares of Intel Stock against Bollinger Bands Strategy Trade||5.00||(11755.00)|
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