Stock / Symbol: [private_monthly]Intel / INTC [/private_monthly]
Price at trade post: $21.36
Option Strategy: diagonal call spread w/ protective call
Reasoning: [private_monthly]INTC[/private_monthly] has found support at its 200 day moving average and we believe tech has been beaten up to a point where these stocks are on sale. We are looking for the stock to have an upward move which will close in on it's 50 day moving average of 22.22 by July Expiration. If the move doesn't occur we will write some more near term calls, which we can repeat through the end of the year.
Max Risk: $480
Max Reward: unlimited
Profit Range: $21.18 +
Profit at $22.50 target: $95 or 19.79% by Jul 15th
Trade Details:
[private_monthly]
BTO 3 INTC Jan12 21 Calls
STO -3 INTC Jul11 22 Calls
for a net debit of $1.55 per contract (GTC / limit order)
BTO 3 INTC Jul11 23 Calls
for a net debit of $0.05 per contract (GTC / limit order)
Requirements:
Cost/Proceeds $480.00
Option Requirement $0.00
Total Requirements $480.00
Estimated Commission $38.85
[/private_monthly]
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