Wednesday, July 20, 2011

Goldman Advises to Sell Call Options on Intel (INTC)

Goldman Advises to Sell Call Options on Intel INTC

Goldman Advises to Sell Call Options on Intel (INTC)

Goldman Sachs is advising clients to buy shares of Intel NASDAQ INTC going into earnings later today but also advising to sell upside call options against their position Goldman believes that Intel will likely fall after the report and thus the implied volatility in the call options will collapse generating return for investors Specifically Goldman has advised that clients sell the March 22 calls against their long stock position Goldman is basing their buy-write strategy on analysis that PC demand has not been that strong and thus should negatively impact the chipmaker s results Intel shares closed 1 2 higher yesterday at 21 30

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