To The Moon

$Intel(INTC)$ is expanding its common stock offering to $20 billion at an anticipated $95 per share offering price. While massive $100 billion institutional demand underscores long-term backing, near-term equity dilution keeps shares trading near $97.52. The $95 institutional price acts as a critical valuation anchor that directly dictates option strike selection.

IF YOU ALREADY OWN THE SHARES

If you hold 100 or more shares, selling a covered call (selling the right for someone else to buy your shares at a set price to collect immediate cash income) monetizes high implied volatility while buffering against dilution.

• Strike Selection: Choose strikes cleanly above the $95 offering price and current spot level, such as the 32-day $102 Call (bidding around $6.75–$6.85).

• How it works: Think of this as getting paid upfront for agreeing to rent out your upside. You promise to sell your shares at $102 if requested within 32 days, and in exchange, you pocket around $675–$685 in cold, non-refundable cash today.

• Why $102? Institutions buying heavily at $95 create a natural price ceiling near $100–$102. Setting your strike at $102 places your exit price safely above both current market prices and institutional entry levels.

• The outcome: If the stock stays below $102, you keep your shares and the $600+ cash (which offsets any short-term drop in share price). If it surges past $102, you still lock in a profitable exit at $102 plus the cash premium you collected upfront.

IF YOU WANT TO OWN THE SHARES

If you want to acquire Intel at a strategic discount, sell a cash-secured put (setting aside cash to buy shares at a lower target price while collecting non-refundable income upfront).

• Strike Selection: Target strikes at or below the $95 institutional anchor, such as the 32-day $92 Put (bidding around $4.75–$5.85).

• How it works: You agree to buy 100 shares at $92 if the price falls that low over the next month. You lock up the required cash, and the buyer pays you an immediate $475–$585 cash bonus for making that commitment.

• Why $92? Because institutions are heavily subscribed at $95, $95 serves as strong structural floor support. Bidding at $92 lets you buy below institutional big money.

• The outcome: If Intel dips below $92, you get assigned shares at an effective bargain price of ~$86.15 to $87.25 ($92 strike minus your collected premium). If Intel stays above $92, you walk away with free cash without buying a single share.

[IF YOU JUST WANT TO TRADE FOR PROFIT (Angle C)]

If you want to trade price action without owning stock, construct a bear call spread (selling a lower-strike call while buying a higher-strike call to cap risk) to profit from overhead resistance.

• Strike Selection: Sell the $100 Call and buy the $102 Call for a net cash credit.

• How it works: You don't need to own any stock. You sell a $100 Call to collect a nice payout (betting the stock won't cross $100), and simultaneously buy a $102 Call as a cheap "insurance policy" to lock in your maximum possible loss if the stock unexpectedly rockets higher.

• Why $100/$102? The $95 offering creates short-term resistance near $100. Setting the short leg at $100 places your trade right behind that resistance wall.

• The outcome: You profit from time decay (options losing value every day as expiration approaches) and volatility crush (option prices shrinking rapidly once event uncertainty passes). As long as Intel stays below $100 through expiration, both options expire worthless and you keep the full net credit.

EDUCATIONAL DISCLAIMER

This post is for educational and informational purposes only and does not constitute financial advice. Options involve significant risk and are not suitable for all investors. Always conduct your own research and assess your personal risk tolerance before trading.

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