INTC Wheel

Market-beating INTC Wheel – 

I’ve traded INTC on and off as a wheel trade for many years – in fact it was one of my first option trades with OptionsHouse back in 2012 that I made to earn a Kindle Fire:

Having recently freed up some cash, I decided to sell a cash secured put to try and get assigned, just after their earnings in July.

Trade 1:

  • 7/31/2019 – Sell 1 8/9/2019 INTC 50 put for 0.36 – underlying was at 51.39
  • 0.72% return on risk ($5k) in 9 days
  • Stock at 51.39, 2.7% of downside protection

I don’t want to brag, but I couldn’t have timed it much worse.  I bought at my usual noon timeframe and the stock dropped further at the end of the day and then continued to drop through my strike price in a trade war induced sell-off.

I achieved my goal and was assigned – early no less – on 8/7/2019.

Trade 2:

  • 8/8/2019 – sold 1 9/6/2019 51 call for 0.25
  • 0.5% return on risk ($5k) for 29 days 
  • 2.5% return on risk if assigned

Immediate return is less than I’d like; would prefer 1%/month on average.  However, combined with the first trade, I’m receiving 1.22% over 37 days with potential upside if called away.

INTC closed at 50.92 on 9/9, basically maximizing my profit without the position being called away.  Clearly good timing on my part.

INTC went on a bit of a run higher, so what did I do?  Nothing. I was on work travel a lot in September and didn’t put on a trade.  A key component of the Option Salary approach is that we’re employed full-time or simply want to avoid watching the market full time to make more room for Netflix.  The risk management approaches we take allow for this.

Trade 3:

  • 9/23/2019 – sold 1 9/27/2019 51 call for 0.45
  • 0.9% return on risk for 4 days
  • 2.9% return on risk if assigned

INTC closed at 50.78 on 9/27, call expired worthless

Trade 4:

  • 9/30/2019 – sold 1 10/4/2019 51.5 call for 0.41
  • 0.82% return on risk for 4 days, 3.82% if assigned

Able to reach for the 51.5 strike and still get a nice return on risk if not assigned.

Closed for 0.03 on 10/3 after the underlying dropped.  

Trade 5:

  • 10/4/2019 – sold 1 10/11/2019 51 call for 0.40
  • 0.8% return on risk for 7 days, 2.8% if assigned

INTC closed at 51.11 on 10/11 and I was assigned.


On $5k of risk, received $184 in premium, plus $100 in capital gains:

$284 total or 5.68% in just 72 days. 28.79% annualized.

Against Buy and Hold:

7/31/2019 – INTC was at 51.39 when I sold the put, 51.11 when I was assigned on 7/11 for a return of -0.54%.  If I include the dividend it would have roughly broke even (up 3.5 cents)

7/31/2019 – SPY was at 300.98, 296.28 on 7/11 for a return of -1.56%


I couldn’t have timed my put sale much worse, had to abandon the position for 2 weeks, and still came out well ahead of buying and holding the underlying or the broader market. 

Market-beating INTC wheel trade
Market-beating INTC trade

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