11/29/2020 Plan:
This week, we look at two bullish plays in Intel (Ticker: INTC)
11/29/2020 Plan (continued):
- INTC – Sell the December 18th 45 put for 0.38 or
- INTC – Sell the December 18th 45/42.5 put spreads for 0.26 x2
- DIS – Sell the December 11th 136 put for 0.72
- Prices are as of market close 11/27/2020, actual fill and strikes may differ depending on Monday’s open, post will be updated accordingly.
- All trades are for educational purposes and do not constitute advice
11/29/2020 Commentary:
Intel has good support at the 45 level and this trade assumes we’ll stay above it for the next several weeks. If you’d like to hold INTC longer term, choose the put, for a more straightforward trade, the put spreads. Depending on how the market opens on Monday, the INTC put could go out an additional week (for an additional 0.1 or so). The put spreads return about 12% on the risk if they expire worthless.
With the market having a big run up recently, implied volatility has come off in many names. As you place trades that are short options, make sure you are getting enough premium to justify the risk.
Reach out with any questions on this or any other trade!
11/30/2020 Entry:
We sell the INTC Dec 24 45/42.5 put spread for at least 0.25 2x or the put for 0.42. Prefer the spreads for most traders, put if you want to own stock. Went out 1 week further as INTC opened higher.
12/6/2020 Update/Close:
The put spreads can be bought back for only 0.03 as the stock had a Huge run-up last week. I would simply close these out rather than waiting almost 3 weeks to collect 0.03. If you sold the naked put, it can be closed for about 0.08.
