I just bought a whole bunch of Jan 2014 20 options. They are selling for 1.60. I just don't believe the stock will stay down here. The yeild is over 4%, they are making a lot of money and are sitting on a large amount of cash. If it stays down here we will see another buy back (I hope). What do you think..
"blackoutbuzz" The 15.00 strike, Jan 2015 calls is a good choice. Apparently, others feel the same. There was good volume on Wed with a large open interest. The good thing about this option is that you will make more on the upside than you will lose on the downside for a given move in the pps. This means less of a drawdown if the pps continues to drift lower.
Because you have so much time premium, you will only gain 0.50 for the next 1.00 up in pps. If you want to add to your position, try doing some call spreads such as the March 17/21 call for a debit of 2.26 with the pps at 19.38. You will be paying nothing for time premium. It is good to do a variety of different option strategies with different exp months and strikes.
Interesting strategy, i will take a look, but I am willing to risk only so much money.; I really like the 13 month timeframe, I believe Intel will trade at 26 to 30 in the next year at some point. If we resolve the debt ceiling I think the market will go up 1000 points..