Navigating Intel’s Turbulence: A Dividend and Options Journey
Intel (INTC:NASDAQ) has been a staple in my portfolio for years, a journey that’s been equal parts rewarding and humbling.
I vividly remember buying INTC shares at $50–$60 back in 2020 and 2021, betting on its dominance in the chip market. In hindsight, perhaps I should’ve put that money into NVIDIA (NVDA)—but who knew then what we know now?
Despite Intel’s struggles, I’ve stuck with it, using dollar-cost averaging (DCA), dividends, and options to navigate its ups and downs. Today, I hold 107 shares at an average buy price of $25.43, with a mix of puts and covered calls in play. Here’s how it’s unfolded—and why I’m now eyeing an exit to focus on NVDA.
DCA, Dividends, and Options
My initial investment in Intel was rooted in its legacy as a chipmaking giant. But the landscape shifted dramatically when Apple introduced its M1 chips in 2020, phasing out Intel processors in favor of in-house silicon. That pivot was a wake-up call—not just for INTC, but for any component maker (yes, even NVIDIA could face this risk if a tech titan builds its own GPUs). Since then, Intel’s stock has been a rollercoaster, and my results have been mixed.
To manage the ride, I’ve leaned on options. Back when INTC traded above $30, I sold cash-secured puts to collect premiums, aiming to lower my entry cost.
When it dipped below $20, I rolled those puts down and out, eventually landing on a single put with a $27 strike expiring in September 2025.
In February 2025, I initiated a buy/write strategy—buying shares and selling covered calls—to juice my returns while holding for Intel’s dividend (currently ~2.2% annually, or $0.50/share at today’s price).
Since March 2023, I’ve collected $354.44 in premiums, reducing my break-even price to $20.89.
Current Position: A Mixed Bag
As of March 28, 2025, INTC trades at $22.68 (real-time data). My 107 shares are slightly underwater from my $25.43 average, but premiums have cushioned the blow. Here’s my current setup:
Covered Calls: Two contracts—2 calls at $25 strike expiring March 28, 2025 (today’s close), and 1 call at $26 strike expiring May 16, 2025.
Put Option: One cash-secured put at $27 strike expiring September 19, 2025.
The $25 calls are out-of-the-money (OTM) with INTC at $24.22, so they’ll highly-likely expire worthless today, leaving me with the shares and premium.
The $26 calls for May give me a shot at selling my shares if INTC rallies, while the $27 put could expire worthless if Intel climbs—or force me to buy more shares at $27 if it doesn’t. My plan? Exit most INTC positions by May 16, keep the September put, and redirect my focus to NVIDIA.
Why the Struggles? Intel’s Challenges
Intel’s decline since 2020 stems from multiple headwinds:
Apple’s Departure: Losing Apple as a major client to the M1/M2 chips crushed INTC’s market share in high-end PCs.
Competitive Pressure: AMD and NVIDIA have outpaced Intel in innovation, with TSMC’s superior manufacturing adding salt to the wound.
Execution Missteps: Delays in 7nm and 5nm processes eroded investor confidence, sending INTC from $60+ to sub-$20 lows by 2023.
My Exit Plan
With INTC at $24.22, I’m ready to wind down, but it might take a few months. At least limit my long exposure and focus on working with September put options.
Post-May, I’ll shift capital to NVIDIA, where I see stronger growth potential. Intel’s dividend and premiums have been a lifeline, but its recovery feels too slow for my goals.
Intel’s story is a cautionary tale about disruption—and a lesson in using options to adapt. My $354.44 in premiums turned a shaky investment into a break-even play, proving the value of covered calls and puts. For those eyeing INTC, the new CEO offers hope, but patience is required. Me? I’m taking my chips (and profits) elsewhere.