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How to get paid for your patience: Using cash-secured puts to invest in Intel

Options 10 minutes to read
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Koen Hoorelbeke

Investment and Options Strategist

Note: This is marketing material.

How to get paid for your patience: Using cash-secured puts to invest in Intel

Have you ever wished you could pick up shares of a company you like, but only if the price drops to your level? And get paid while you wait? With a cash-secured put, that’s exactly what you can do.

This strategy lets you set your own buy price—and receive an immediate cash payment for your willingness to buy. It’s a tool many patient, long-term investors use, especially in uncertain markets like the one Intel (INTC) faces today.


Why consider cash-secured puts on Intel right now?

  • Stock at multi-year lows: Intel’s share price is around $21.50, near its lowest point in years.
  • Plenty of uncertainty: Major restructuring, layoffs, and a crucial earnings report are just ahead, which means market volatility—and higher option premiums for sellers.
  • Lower capital needed: With shares at this price, you can control 100 shares (the minimum for options) for just over €2,000.

What is a cash-secured put?

A cash-secured put means selling a put option while holding enough cash in your account to buy the stock if assigned.
Here’s how it works:

You agree to buy 100 shares of Intel at a price you choose (“strike price”) by a set date. In return, you get paid a premium up front.

If the price never falls to your chosen level, you simply keep the premium. If it does, you buy the shares at your preferred price—possibly cheaper than the current market.


Step-by-step: Selling a cash-secured put on Intel

Let’s use today’s real numbers, and walk through every step.

1. See where Intel stands today

2025-06-20-00-INTC-5ychart
Five-year weekly chart of Intel (INTC), showing steady decline from above $60 to around $21.50. © Saxo

Intel’s share price has fallen sharply over several years. For a long-term investor, this might be a buying opportunity—but what if you could get in at an even better price, and earn some income for waiting?


2. Find your “buy price” and check the option chain

Suppose you want to buy Intel at $20 per share—a price below the current market.

2025-06-20-03-INTC-CSP-optionchain
Options chain for Intel, July 2025 expiry, with the $20 put strike highlighted. Shows a bid of $0.46 and ask of $0.53. © Saxo
  • Sell one July 18th, $20 Put option
  • Receive $0.46 per share (that’s $46 for 100 shares)
  • Your cash ($2,000) is set aside in your account until expiry (hence “cash-secured”)

3. Understand your possible outcomes

2025-06-20-04-INTC-CSP-strategy
Risk/reward payoff graph for selling the $20 July put: max profit is premium received, max loss is if Intel drops to zero, breakeven point is $19.54. © Saxo

Here’s what can happen:

  • Intel stays above $20: You keep the $46 premium. Your cash is freed up again after expiry.
  • Intel falls below $20: You are required to buy 100 shares at $20 each. Your real “buy price” is actually $19.54 per share (strike price minus the premium).
  • Intel drops a lot: Your maximum loss is the same as if you’d bought the stock outright at your net price. The premium provides a small cushion.

4. Why cash-secured puts fit today’s market

  • You get paid for waiting: The $46 premium is yours to keep, no matter what.
  • You choose your entry price: No more chasing the market—if you want to buy lower, you can try.
  • Risk is clear and limited: The risk is the same as owning the shares from your chosen buy price, minus the premium.

Key numbers at a glance

ScenarioWhat happensNet cost per shareOutcome
INTC stays above $20 at expiryKeep $46, no shares bought$0Earn $46 income
INTC falls below $20 at expiryBuy 100 shares at $20 each$19.54Own INTC at discount
INTC drops well below $20Buy 100 shares, paper loss below $19.54$19.54Loss, as with stock

FAQ

Q: What if Intel falls a lot after I’m assigned?
A: You’ll own shares at $19.54. The risk is just like buying shares outright, minus the premium.

Q: What happens to my cash while I wait?
A: It stays set aside (“secured”) in your account. You can’t use it for other trades, but you earn the premium up front.

Q: Is there a risk I won’t get the shares?
A: Yes, if Intel doesn’t fall below $20, you simply keep the premium and don’t buy the stock. Many investors repeat this process until they get assigned.


Summary

A cash-secured put lets you get paid to name your price on Intel. You either buy at a discount or keep the premium. It’s a practical, conservative strategy for patient investors—especially when the market is uncertain, and premiums are elevated.

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