Intel's earnings growth and technical consolidation support a covered call strategy at a $120 strike for income generation.

and as I was browsing the results, this candidate, Intel, came up. It's been a long time since I've been interested in Intel, but as you know, the government has a stake in it, and chip stocks are performing well, and we prefer domestic production, perhaps this sets the stock up for further gains.

I don't know, but it's definitely worth some research, and that's what I'm doing now; I do the research, and the program provides me with everything: the strategy and all the details.

"Cashflow Machine" gives me a score of 61, which is very good, and then explains the recommended strategy .

He recommends a strategy called "equilibrium point," which is approximately at the execution price. He says: Sell the call options at an execution price of $120 for October 23, which is about a month from now.

Usually, I prefer a period of two or three weeks, but this one caught my interest. So, I started looking into the details. It says: 29 days until the expiry date. The option premium is approximately $11.70 if we choose to execute $120.

It tells you the expected "return ". "Return" is the income I aim to achieve. For me, this is an income-generating strategy . I am not seeking to make exorbitant profits all at once .

I use the breakeven point to try to maximize income.

Then it tells me the size of the safety margin, and the exact location of the arrow at that time. But markets are changing, are n't they? So, this account was created a little while ago.

However, you can see that these numbers are certainly of interest to me. It deserves further review.

So, I'll start by looking at what makes this stock special. This is how I deal with these things. As you know, if it were that easy, everyone would do it . Therefore, it takes some effort to select a quality asset, and that's what made the stock emerge as a front-runner.

The first thing I do is check the basics, then I examine the chart. I'll start with the weekly chart. Okay, this is the weekly chart. You can see that it jumped up here, and it had a long, cup-shaped base and a loop, then it jumped here and showed some cohesion.

It is now in a consolidation phase. We have seen several weeks of decline, but not with huge trading volumes, and now we are building the right side of that base .

The way I look at this is, you know, the stock dropped about 60 points here, then went up to make point (C). So, from that point (C), I see maybe about 167. Point (C) is about 117. So, maybe 167, 177, something like that .

In any case, the idea is that I want the stock to move in my favor, but it doesn't necessarily have to reach that exact level. The important thing is to make a profit. So, look at the numbers here and see, well, in 2024, they lost 13 cents after many years of making profits.

Then they regained their balance, at 42 cents, $1.54 this year, and $2.12 next year. With an earnings per share growth rate of approximately 292% over 3 years. This is actually very good .

So, this gives me the comfort that this is a good step. Then I move to the daily chart and you can see that it is much more turbulent . And I drew this small downward-pointing triangle.

You can see that he surpassed that by a gap . This is an early entry point, and now it's stuck just above that small support line there .

My goal is to enter a little early and then increase the position. So, we enter here and then maybe add to the center, and collect a lot of profits, and build some protection so that we do n't have to leave it. This is how I see it .

Then I go back to my Cashflow IQ app and look at the options analysis. So, I have Intel here. It brings the current price at 125. Remember, we are looking at the 120 category, I think that's what the survey showed.

So, we'll try that. We will get a live price for those options (120) for October 23. You can see all of that. Basically, these are the new updates based on the current market situation , this is the available return, this is the percentage, and you can get an idea of it. He does all the calculations on your behalf .

Net balance, maximum loss if the stock reaches zero, which is of course possible for any stock, and maximum profit, as long as it remains above the 120 level, is the amount of profit I plan to make in the next twenty-nine days.

So, you know, obviously if the stock goes down, that works against me, but if the stock goes up, I won't get more than 120, but I know what my maximum profit is now. If the price stays here at 125, I am already above the 120 level.

So, if the price stays the same, that is my maximum profit. That's what the calculator says.

You can scroll down here to see what the graph says , right? This small chart will tell you your profit zones. He explains, and that's great. It shows 112, or whatever it refers to, 112.14 as my break-even point.

Thus , you can see that I am simply lowering my breakeven point while selling "in-range" call options. Now, the stock can drop a lot on a bad market day, yet I still hold onto the stock , and I haven't lost any money until it reaches this point on the chart . This is how I view this deal.