A Tale of Two Trades

I almost forgot about Intel (INTC) today. It hasn't exactly been the most exciting position to hold, but the stock has started to come back to life. In fact, if it wasn't for earnings, I would say the stock is worth buying based only on the current technical read. I tend to like INTC into earnings. I am long the shares already, but it isn't a position I look to trade around, so I am just going to maintain those shares outright. I do have a small earnings trade that I am doing on INTC now though.

Intel (INTC) -- Daily Source: StockCharts.com View Chart » View in New Window »

I'm not looking for huge upside on this INTC trade, so my position will be to go long 1 February $21 call, long 1 January 18 $21.50 call and short 2 January 18 $22.50 calls for $1.88. Really, I am just looking for INTC to continue trading above  $22 with this trade. If INTC closes above $22.50, then my February call plus the January $21.50 will be worth around $2.50 or a bit more, net of my short January calls. Therefore, the upside will only be around $0.70. But I already hold shares in the name, so I am not looking for a home run with this play. If I were very bullish, I would bump those January strike prices up $1 each for about the same cost. The upside there becomes $3.50 on a big move higher by INTC....126 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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