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Option Writer Portfolio - July

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Intel Corp (Symbol: INTC) engages in making, marketing, and selling integrated circuits for computing and communications industries worldwide. It offers microprocessor products, including multi-core processors, quad-core microprocessors, 32-bit architecture microprocessors, and 64-bit architecture microprocessors used in desktop computers, enterprise computer servers, and workstations, as well as in embedded designs, such as industrial equipment, point-of-sale systems, panel PCs, automotive information/entertainment systems, and medical equipment.

Sector: Technology

Industry: Semiconductor

EPS Date: July 15th

We are selling the July 21 Put on INTC because the Semiconductor sector has shown some resiliance while many other sectors have faltered. While the initial return isn't super high, it is still above our goal of a 10% minimum. We will need to watch this position closely because the return isn't super high. However, we have some other positions in the portfolio that do have higher max returns and also corresponding higher risks.

Our first alert is a break of the uptrend line currently just above $22 and then $21.79, the June low. If the $21.79 low is broken then the gap up from April may come into play. That high is $20.94 from April 14th, the establishment of the breakout that I refer to quite often as support for the indices. Resistance is simple at $23.01 and $23.56 at the 50 and 200 day Moving Averages, respectively. Since INTC options are mostly posted in strike increments of $1, a move to the 200 day moving average would be a good point to short the calls.

Risk Management for INTC
Strike Stop = $ 21.00
Cost Basis Stop = $ 20.64
Technical Stop = $ 20.94

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