CLOSING $INTC Options Action trade - mike

17aug - going to be a no cost no foul trade, with INTC near 26.25... so for 3 months stock is up 30cents and you got nothing out of the collar unless you traded around it somehow..like closing the call on down moves, maybe reselling it on up moves type of trades

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31 may - mike has a no cost collar on tap for INTC tonight, here is the video clip for the segment. with stock at 25.84 he is suggesting the

Buy the Aug 23/28 collar for no cost.. sell the 28call, buy the 23 put for zero

as usual i disagree with mikes timeframe. but first as you can see by the graphic they put up at about the 50second mark that because he is buying a 23 put you have losses from current price all the way down to 23.. so you take a 10% loss BEFORE that Put kicks in to protect you if you hold to opex. if you are locked into using the Aug timeframe i would make this a put spread collar.. buy a 25/23 put spread and sell the 28call.. probably for about 5cent debit.. that way you dont have to have a $2.50 drop in price first to get protection.. your protection starts after just an 84cent drop.. i would tradeoff the "unlimited" type gains a 23put might give me to get the immediate protection.. having to have some loss is ok sometimes but having to eat a 10% loss does not qualify as protection.. like having a 10% deductable on your car insurance. also looking at chart the 23 level where that Put would kick in looks to be a support level from december, might be hard to drop thru that.
    second, i disagree with the timeframe.. why go to august, why lock up your position for 3 months..why not try this in July(not knowing when earnings are)... id do that first.. if it works out , even if it doesnt you can still do a collar in august..for july id go with the sell 27call, buy 25/23 put spread...close to breakeven again... can do this every month if needed if your thesis is bearish going forward.

mikes on-air trades in google docs spreadsheet