Investment and Options Strategist
Summary: Intel just surged after Nvidia’s surprise investment, but is it too late to buy? Discover how a simple cash-secured put lets you earn income and set your own entry price - without chasing the rally.
Shares of Intel (INTC:xnas) surged over 22% on Thursday after Nvidia announced it would invest in the company and collaborate on next-gen AI chip production. It was one of the stock’s biggest single-day moves in over a decade.
If you’re a long-term investor, your first thought might be: “Did I miss the boat?” After all, a +20% jump can feel like chasing the story after the fact. But there’s a way to stay patient and get paid while you wait for a better entry price.
That’s where a cash-secured put comes in.
Important note: The strategies and examples described are purely for educational purposes. They assist in shaping your thought process and should not be replicated or implemented without careful consideration. Every investor must conduct their own due diligence, considering their financial situation, risk tolerance, and investment objectives before making decisions. Remember, investing in the stock market carries risks, so make informed decisions.
A cash-secured put is a straightforward options strategy where you set aside the cash to buy a stock at a lower price—and get paid for your willingness to do so. It’s a tool that fits well with patient, long-term investors who want to earn income or potentially buy a stock at a discount.
In this case, you could agree to buy Intel if it falls back to $28 by mid-October—and get paid a premium upfront just for making that offer.
Here’s one possible setup:
| Trade details | |
|---|---|
| Stock price | $30.50 |
| Option sold | 17 Oct 2025 Put, strike $28 |
| Premium received | $0.82 |
| Cash reserved | $2,800 |
| Max profit | $82 |
| Breakeven | $27.18 |
| Return (28 days) | ~2.9% on cash, ~2.7% on stock |
| Prob. finish above $28 | ~74% (delta proxy) |
Here’s what could happen if you hold the trade until expiry:
| Scenario | What happens | Result |
|---|---|---|
| INTC is above $28 | You keep the premium | $82 income (no shares bought) |
| INTC is below $28 | You're assigned 100 shares at $28 | You buy at an effective $27.18 |
| INTC drops well below $27.18 | You’re buying above market price | Loss on the shares, offset slightly by the premium |
What happens if Intel keeps rising?
You keep the premium, but don’t buy the stock. You can repeat the trade or move on.
What if Intel drops sharply?
You may be assigned shares below breakeven. Make sure you’re comfortable owning at $27.18.
Can I exit the trade early?
Yes. If the premium drops significantly, you can buy it back at a profit.
How much capital is required?
$2,800 per contract, held in cash, for 28 days.
This strategy isn’t about timing the next breakout. It’s about setting a plan, defining your terms, and getting paid while others chase headlines.
If Intel fits your portfolio and you’re happy to buy it at $27.18, a cash-secured put could be a smart, income-generating step.
| More from the author |
|---|
Outrageous Predictions
Head of Investment Content Switzerland
Outrageous Predictions
Senior Relationship Manager
Outrageous Predictions
Chief Investment Strategist
Outrageous Predictions
Saxo Group
Outrageous Predictions
Global Head of Macro Strategy
Outrageous Predictions
Chief Investment Strategist
Outrageous Predictions
Global Head of Investment Strategy
Outrageous Predictions
Global Head of Investment Strategy
Outrageous Predictions
Investor Content Strategist
Outrageous Predictions
Global Head of Macro Strategy