INTC (Intel) — Position Update
Both of my INTC covered calls have now been assigned, and my 200 shares of Intel were called away:
* 100 shares at $100
* 100 shares at $103
My stock cost basis was approximately $99.84 per share, so both blocks were sold at or above my stock cost basis. I also collected option premium from the covered calls and the rolls I made while managing the position.
Why I Let the Shares Go
I looked at the possibility of rolling both calls again, but the premium simply wasn’t attractive enough to me.
Rolling would have meant continuing to commit the capital to INTC for additional time, and I didn’t think the premium being offered adequately compensated me for doing that.
So I let the calls expire in the money and allowed the shares to be called away.
That’s an acceptable outcome for me.
When I sell a covered call, I do it knowing that assignment is one of the possible outcomes. I’m not selling calls at strike prices where I would be unwilling to sell the shares.
In this case, I collected premium while managing the position and ultimately sold the 200 shares at prices I had already agreed to accept.
Now the Capital Is Available Again
The assignment also frees up the proceeds from those 200 shares.
Rather than roll the calls simply for the sake of keeping INTC, I’ll look for other opportunities where I think the available premium provides a better use of the capital.
I don’t feel obligated to keep a position just because I’ve been trading it. The capital has to earn its place, too.
For now, my INTC position is closed. If another attractive opportunity develops in INTC later, I can always establish another position.
Important Disclaimer: This is a record of what occurred in my actual account and how I managed the position, not a trade instruction or signal.