Quarterly Outlook
Q3 Investor Outlook: Beyond American shores – why diversification is your strongest ally
Jacob Falkencrone
Global Head of Investment Strategy
Intel just jumped on Nvidia’s vote of confidence. What now?
Koen Hoorelbeke
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.
Intel just jumped on Nvidia’s vote of confidence. What now?
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 simple, conservative way to invest
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.
Today’s example: Sell the 28 strike put, expiring 17 October
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) |
What happens at expiry?
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 |
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
- Set aside $2,800 per put contract (enough to buy 100 shares at $28).
- Go to the Intel options chain.
- Select the 17 October expiry.
- Choose the $28 put.
- Enter a limit price of $0.82 or better.
- 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.
| More from the author |
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This material is marketing content and should not be regarded as investment advice. Trading financial instruments carries risks and historic performance is not a guarantee of future results.
The instrument(s) referenced in this content may be issued by a partner, from whom Saxo receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options..
The instrument(s) referenced in this content may be issued by a partner, from whom Saxo receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options..
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