One stock I use regularly for selling options for income is Intel Stock. Intel Stock trades on the NASDAQ under the symbol INTC.
Selling Options For Income
Intel Stock is a mainstay or a core position for selling options for income. I have used this stock for the past 16 years, following the 2:1 split in the stock on July 31 2000.
Intel Stock 2000 – 2016
For most investors this has not been the type of stock they would have enjoyed trading or holding. Over the past 16 years most investors look at Intel Stock as a “go nowhere” stock. Looking at the chart from July 2000 to July 2016 you can see why that opinion is dominant among many investors.
The low of stock has been $12 back in the height of the bear market of 2008-2009. The high has been basically around the $35 to $35.50 range. Through all of this, Intel Stock has continued to increase its dividend and is now at the point where the dividend is $1.04 for a yield of 3.07% as of July 8 2016.
But by combining selling options for income along with a few stock trades, I am averaging over 13% a year and many years I have reached 20%.
Reliable and Consistent
Intel stock has been extremely reliable and very consistent in churning out profits for my portfolio and not all stocks can say the same. This consistency comes from the stock’s movement which as you can see over the past 16 years, has been primarily sideways. This makes for a very well defined chart pattern which makes it easy to sell options for income as well as do the odd stock trade.
Upgrade and Downgrades
Over the course of two decades Intel Stock has had its share of upgrades and downgrades. They have all resulted in the same movement. Upgrades see a pop in the stock, such as the upgrade today from RBC, which eventually dissipates and the stock moves lower.
Downgrades such as the downgrade in February of this year, makes for terrific trade opportunities as the stock falls back, investors bail out and eventually the selling stops and Intel stock moves back into its normal trading range.
Every downgrade in Intel stock since the middle of 2000 has been a great opportunity to grab some shares on the sell-off that has followed every downgrade and then sell them, usually a few weeks later for a very nice profit.
Intel stock is one of the more consistent performers and is definitely reliable at cranking out profits for my portfolio. These are the types of trades that can be placed and never worried about. Intel Stock provides very stress-free investing.
Intel Stock Trade Alert and Strategy Discussion – July 8 2016
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.