Re: Cashing in my options
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They expire years from now. I have about 8 different grants with prices between $15 and $30.50. The first ones expire in 2011, and the last ones expire in 2015.
I am bearish on the company (should I be). The stock is trading at a 27 PE ratio and has been on a good run since winter. I think a 27 PE is too high for Intel which is realistically no longer a growth stock. Any future earnings are going to be grown through cost reductions at this point. They don't have any good strategy to prevent the complete commoditization of their current product, and there aren't any new products on the horizon that would really boost the bottom line. I would love to see them become a big player in cell phone processors, but they haven't made many inroads so far.
The upside is that intel moves with the market these days, so if the S&P and Dow continue to do well, Intel shares could rise as a result. I don't believe the fundamentals point towards owning these shares however.
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sounds like you've thought it through and have a good handle on the situation.
another thought is that despite commoditization, huge growth in the demand for computers from china/india in teh future could still push the share price up. 27xearnings though is a bit high i agree.
only advise i could intelligently give is "don't sell the $30 options first" lol.
sounds like you could sell the most in the money now and work backwards given your view of the company.
Barron
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