Trades – INTC Put – Bought-to-Close

Over the last 10 days, Intel Corporation has seen some strong gains, gaining about $0.80, or just under 4%, during that time frame (including today). As a result, the January 18th, 2014 put I sold had dropped significantly in value affording me a too attractive opportunity to lock in some profits. I still think that INTC is a very strong company with significantly more upside than the past six month trend would indicate, and a company I will continue to include in my holdings.

Intel Corporation (INTC) – Bought-to-Close Put

With the market price of my January 18th, 2014 put down to $2.56 per share, I decided to close this option and lock in my profits today. With a total repurchase of $261.63, including $5.63 in trade commissions, my net profit on my INTC put was $47.71. Given that I sold this option on 2/21/13, held it for 11 days, I earned a nice 72.0% return on the $2,200 at risk with this transaction.

I’ve updated my Investments page with this transaction.

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Comments

  1. Not bad at all! There’s nothing wrong with taking a profit. I’ve been thinking of closing out my KO put but need it to come down a just a bit more.

  2. Love it! This is a perfect example of a low risk trade where you can sit back, sleep well at night, and collect a profit. In my honest opinion this options strategy is one of the safest and most lucrative method to make money in the stock market. Great job!

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