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As shown in this picture, how do I execute the strategy highlighted in yellow? I am based in the UK. enter image description here

Source: http://seekingalpha.com/article/274231-intel-dividend-champion-in-the-making (10/6/11)

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The Options look like this (I clipped to show just these two).

Intel Options

You call the broker, and buy 100 shares of INTC for $2,132 and then ask to "Sell to Open" one contract of the September $23 call for $41, which is what it trades at this minute. If Intel goes to $30, That guy you sold the $41 valued option now has $700 for his money, and you just sold the stock for $2300, instead of $3000. Selling covered calls for these small amounts is no way to get rich.

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  • Just curious - what does that scenario look like now that INTC is closer to $20? And what was the advice in the question trying to recommend, anyway?
    – Nicole
    Sep 7, 2011 at 23:36
  • The $23 strikes are worthless, no bid, 1 cent ask. Following the above trades, the buyer owns Intel at $2132 - $43 or $2089 for 100 shares. No great deal either way. The OP read an article suggesting selling covered calls to make more money than just buying the stock. Sep 8, 2011 at 0:08

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