COLORADO TRIP ALMOST OVER.

About Time To Head Home. I have been in Colorado in excess of two weeks. I haven't cashed any checks as a result of my trip here but I have opened some new possibilities and I have rejuvenated my spirit as a result of some of the things I have done. I saw a number of friends that I have missed more than I thought. One of the high points was spending an afternoon with a cousin that I have not seen for 60 years. She was a bright teenager last time I saw her and she is just as interesting to be around now as she was 60 years. Her husband, who I never met is also related to me through another branch of the family. He is a fine gentleman. Say what you want about Facebook but I would never have found them otherwise.

Update On Intel. On January 18, I told you about a hedged investment I made in Intel. At the time I told you I would keep you informed as to the performance of that investment. To refresh your memory, I bought 1000 shares of the stock at 21.07 per share last November. At that time, I sold an option to buy those shares from me at 22 in mid-February. I got $630 for that option. The $630 went into my account and I was free to spend it however I wished. Just before exploration, the stock was selling for just over $22. If I had done nothing, I would have lost the stock at $22 a share for a net profit of $1630. That would have been a satisfactory result for a 3 month investment of $21,070. Not a barn-burner but still almost 8% for three months.

Another Alternative. I bought the option back for $195 leaving me a profit of $435 and I didn't have to sell the stock. I also sold another call at $520, this time with a strike of $23 and an expiration of April. This is just another example of what you can do to manage a covered call position once you establish it. Another factor, I received a dividend of $180 today. Granted, these aren't huge dollar amounts but they add up and with only $21,000 at risk it appears to be a prudent investment. I still think Intel is a great buy at the current price of $21.49 and I have generated $1135 in cash flow to buy groceries. I will let you know how things look on or before the Mid April expiration date of the stock.

This Is Not A Lot of Work. You can get by with checking this position once a day once you've established it. In my last post, I talked about information, analysis, and intuition. Establishing a position like this and monitoring it helps develop your intuition to make more money in the future. I am always glad to hear from my readers. Let me know what you think.