i'll add that i have never heard of using short calls to hedge a long. all u r doing is limiting your upside with the downside 100% unhedged. you are reducing the net cost of your position but if you get the expected run toward 28 your stock will be called away at 25 (9,500 shares) leaving you dreaming about what might have been. if you are looking to reduce your net cost write puts as a way to add long stock or sell a put credit spread.
Please let me know the very second that you sell, because that's when the stock will probably rebound.
Keafan, If my 9500 shares get called at 25, I still make money. All 9500 shares were bought 25.46 to 24.85 with October covered calls ranging from .75 to .45 Therefore, if my shares get called, I'll pocket the premium and still wouldf not have lost a penny. If I don't get called, then I'll roll the October into the November. Jack
Hello by: TonyJohnS (24/M/Tempe, AZ) Long-Term Sentiment: Strong Buy 09/27/05 10:53 am Msg: 748215 of 748233 I'm an Intel employee. No joke. I work the night shift and I'm almost ready to go to bed, but I wanted to add that Intel just hired 75 new employees in my department alone. Intel has already started constuction on FAB32 in Chandler AZ for their knew 300mm FAB (1264 process). I was told that Intel will be doing very well and the stock will soon rise at least for the next 3 years. The big players (fund managers) are just doing what they do best. And for Vista/Longhorn launch, that might be in the middle of '06 and no later than '07. That is a big deal for MSFT and INTC. Just too let the longs know that there safe and good night too all.
i didn't say u wouldn't make money. i said u r not hedged. writing covered calls has absolutely nothing to do with hedging. it has everything to do with generating income and reduces your upside potential.
Traders: I just pulled up an INTC chart and I see nothing from a technical standpoint that even remotely shows a long. This stock is a classic short and has been for some time. It's breaking new pivot lows and recently took out the 200-day ma, with no real support until 21.80. One thing I learned, and most of it came during the downdrafts from 2000-2003 is *never* to keep buying on the way down. It may of course bounce off 21.80 for a new uptrend but look at all the heat tou're taking in the meantime. And then what if it doesn't? 19.45 is a long way off with 12 1/2 grand of shares. Wow. Good luck to you, doctor, I hope it turns for your sake.
I'm with you a 100%. Never buy a downtrend. Wait for some type of sign of a rebound , anything. Also don't call the bottom wait for a reversal like the April one, or anything else you may use. I'm waiting to trade this one, but I have to wait til the buying dries up more and the prices drop further.
Just to add a fundamental perspective, the intrinsic value calculates out via two separate methods to a range of $12.96 - $11.57 Not to say that this "price range" will ever necessarily be seen, however there will be no real buying support from the "value" investors or funds until that sort of price is available. The remaining price is speculative in nature, and is prone to all the usual psychological and emotional distortions. There is the "legal aspect" of their fight with AMD regarding unfair trading practices, that will suppress any undue optimism until some form of resolution is seen. Improved earnings is due in part to an increase in tax credits, from increased R&D spending.
Trading advice from a night shift Fab worker should not be heavily relied on. And, if Intel Legal discovers who this person is who sent you this mail, that person could be subjected to a "corrective action program" for attempting to offer insider information in violation of Intel Policy and Federal securities law.