Intel’s shares are trading at $21.48, after a significant decline. For patient investors, this means higher option premiums, and it’s affordable to own 100 shares.

2. Select your call option

Suppose you’d be satisfied selling Intel if it rises to $24 by July 18, 2025 (about 12% higher than today).

• Sell one $24 July 18, 2025 call option
• Receive $0.34 per share (total $34 for 100 shares)
• ROI example: $34 ÷ $2,148 (current 100 shares value) ≈ 1.6% for a one-month hold. If repeated, this could annualize to ~19%, though results may vary.

3. What could happen next?

Three scenarios:

1. Intel stays below $24:
   • You keep your shares and the $34 premium.
2. Intel rises above $24:
   • You’re required to sell your shares at $24, but keep the premium. Your total sale is $24 + $0.34 per share, a gain of about 13% from the current price.
3. Intel falls:
   • You still own the shares. The premium slightly reduces your loss but does not eliminate downside risk.

4. What are the risks?

• You cap your upside: If Intel suddenly surges, your gain stops at the strike price plus the premium.
• You still face downside risk: If Intel drops, you lose value as with any stock investment, but the premium collected softens the blow.
• Early assignment risk: If Intel approaches the strike price just before an ex-dividend date, the option might be exercised early. This is uncommon, but worth knowing.

Is this strategy right for you?

Covered calls are best for investors who:

• Want regular income while holding a stock
• Are willing to sell shares at a set price if the stock rises
• Prefer a conservative, step-by-step approach to using options

If you never want to sell your shares, choose a higher strike price or skip selling covered calls during volatile periods.

Summary Table

FAQ

Q: What if I don’t want to sell my shares?
A: Pick a higher strike price, or don’t sell covered calls during times when you expect a big rally.

Q: What happens if the option expires?
A: If Intel is below $24 at expiry, you keep the shares and the premium.

Q: How risky is this?
A: The main risk is Intel dropping in value, just like owning the stock. The premium collected slightly reduces your loss.