What happens at expiry?

Here’s what could happen if you hold the trade until expiry:

Why consider this strategy now?

• Elevated volatility = higher premiums. Intel’s options are currently pricing in more movement, so you’re being paid more to take the risk.
• You’re not chasing the rally. You set your price, and either get paid or get the stock at a discount.
• Your downside is defined. You know the exact breakeven level before placing the trade.

How to place this trade

1. Set aside $2,800 per put contract (enough to buy 100 shares at $28).
2. Go to the Intel options chain.
3. Select the 17 October expiry.
4. Choose the $28 put.
5. Enter a limit price of $0.82 or better.
6. Confirm and place your order.

Managing the position

• If the option loses most of its value early, you can close it and lock in most of the premium.
• If the stock hovers near $28 close to expiry, you can roll the put to a later date for more premium.
• If assigned, you now own Intel at $27.18—a price you were comfortable with—and can sell covered calls from there.

Risks and considerations

• Earnings timing is unclear. Intel typically reports late October, but if that shifts earlier, your put could be affected by earnings volatility.
• You could be assigned early. If the option is deep in-the-money near expiry, assignment is possible.
• You may need to hold the stock. Be ready to own Intel and stay patient during volatility.

Not ready to commit? Consider alternatives

• Want more downside protection? Sell the $27 put instead.
• Want more income, even if it means a higher entry? Try the $29 put.
• Want exposure but no obligation to buy? Look at a defined-risk bull put spread.

FAQs

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.

Final thought

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.