Setup
INTC remains under Wheel management following assignment of 300 shares at $98.
The September 4 $100 and September 11 $106 Covered Calls both expired worthless, collecting $276 and $453 respectively.
Together with the original $324 CSP premium, those trades reduced the effective cost basis to approximately $94.49.
With INTC near $99, three September 18 $103 calls were sold to collect premium while preserving upside above market and the original assignment level.
Structure
Three Covered Calls were sold at the $103 strike, expiring September 18, 2026.
The position collected $1.24 per share, or $372 total, against 300 covered shares.
The premium reduces the effective Wheel basis from $94.49 to approximately $93.25. The $103 strike remains $5 above the $98 assignment price and left roughly 3.8% additional upside from the approximately $99.23 evaluation price.
Assignment Logic
If INTC remains below $103 through September 18, the calls expire worthless and the $372 premium is retained.
The 300 shares remain in the portfolio and the effective Wheel basis falls to approximately $93.25.
If INTC closes above $103, the shares are called away at $103 for a $5-per-share stock gain, or $1,500 across the position, relative to the original assignment price.
Including $1,425 in cycle premium, approximate total cycle profit at call-away is $2,925 before fees. Both outcomes are acceptable.
Premium Context
Premium is fair rather than elevated.
The $103 call provides $1.24 per share with only three days until expiration, while its delta was approximately 0.29 when evaluated.
Premium supports the structure but is not a clear volatility edge:
- historical volatility was approximately 64%
- displayed implied volatility was around 66%
- IV Rank was moderate
- lower strikes offered more credit but reduced remaining recovery upside and increased call-away probability
The premium is useful because of the short duration and the acceptable exit level.
The $103 exit remains the priority. Premium comes second.
Trade Structure
Management Plan
If INTC remains below $103 through September 18, the calls expire worthless, the $372 premium is retained, and the effective Wheel basis falls to approximately $93.25.
The 300 shares remain available for another Covered Call when the next setup offers an acceptable combination of strike and premium.
If INTC moves above $103 and shares are called away, the exit remains $5 above the original assignment price.
The complete cycle would have collected approximately $1,425 in option premium and produced approximately $2,925 in total profit before fees.
There is no plan to defend shares or roll automatically simply because INTC trades above the strike; the $103 exit was acceptable before entry.
Process Note
INTC shows why Covered Call management does not require selling the closest strike every week.
The first $100 and second $106 calls expired worthless, reducing the effective basis to $94.49 while allowing shares to remain in the portfolio. The $100, $101, and $102 strikes offered more premium, but not enough to justify giving up more recovery.
The $103 call pays $372 while retaining another $5 per share above the original assignment price. If worthless, basis falls to approximately $93.25; if called away, the cycle closes with approximately $2,925 profit before fees. No prediction. Just process.
