Intel Corporation: Poised For Long-Term Breakout, Here's My Option Collar

Summary

• Intel Corporation now offers an attractive risk/reward profile, but only when protected by an option collar due to ongoing volatility and fundamental risks.
• Profitability and valuation grades have improved, signaling early-stage recovery, while technical analysis shows signs of price stability and a washed-out long-term chart.
• My personal strategy involves buying INTC shares, selling covered calls, and buying puts, creating a 4:1 upside/downside ratio and limiting risk without capping reasonable upside.
• I strongly advocate for option collars as a risk management tool, especially in uncertain markets, and encourage investors to learn and apply these strategies.
• This idea was discussed in more depth with members of my private investing community, Sungarden Investors Club. Learn More »

Sundry Photography

Analyst’s Disclosure:I/we have a beneficial long position in the shares of INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I also own puts and covered calls as described in the article