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.