Options Trading News

June 12, 2013  Wed 5:16 AM CT

Intel has enjoyed a nice run this quarter, and now the bulls are moving their positions higher and out in time.

optionMONSTER's Heat Seeker program shows that traders sold the June 26 calls yesterday and bought the July 27s. Blocks of 40,000 contracts in each traded for a net cost of $0.11.

Long calls lock in the price where the stock can be purchased, allowing them to track movements in the underlying share price. Rolling them from one month to the next keeps investors positioned to profit from gains while limiting the cost. (See our Education section)

INTC declined 1.2 percent to $24.71 yesterday. The chip maker has moved from the low $20s to the mid-$20s but remains below its recent highs.

Yesterday's roll accounted for the bulk of the option paper in INTC yesterday. Calls outpaced puts by 128,000 to 19,000.

Disclosure: I own INTC calls.

(A version of this post appeared on InsideOptions Pro yesterday.)
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The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

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