Bought 20 blocks at 19.97, and wrote 2000 Jan strike 20 calls at .29/contract to hedge the underlying shares.  I feel this is a good dollar cost averaging infliction point after selling a large block several days ago.  This play ensure me .29/share times 200,000 shares, a return that isn’t bad in 3 days remaining to option expiration.

 As to yesterday’s earnings report.  This is exactly what has happened to INTC in Jan of 2005.  Then, they had a record quarter of 10.6 billion in revenue but Wall Street punished the stock by 3.5 points becuase it didn’t meet expectations.  Similarly, yesterday their revenue was a significant increase compared ot last year’s report, but fialed to meet analysts’ expectations.  This is how Wall Street plays its game– Monkey buy, monkey sell!  INTC is down 28% in 2 weeks. 

As to technicals. it appears that the 19 area is going to hold.  Otherwise, the stock would have to test the 3-year low of 17.  If it does, I will be adding more shares.

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