Own Intel and want it to pay you Selling covered calls turns shares you already hold into monthly income, paid to you up front in cash.
Here is exactly how it works on INTC: a plain $200 example, a payoff chart, and the simple rules for picking a strike.
Education only, not financial advice. All numbers are illustrative examples.
⏱️ The 60-second version
- A covered call means owning 100 shares and selling 1 call to collect a cash premium.
- Intel fits well: liquid options, moderate volatility, and a stock people already hold.
- Sell about 30 to 45 days out, slightly out-of-the-money, at a price you would happily sell.
- You get income and a cushion, but your upside is capped at the strike.
Jump to
What Is a Covered Call
Two moves, one trade:
- Own 100 shares (that is the “covered” part).
- Sell one call against them at a strike and date you choose.
In return you collect the premium, which is cash that is yours to keep no matter what. You are simply renting out shares you already own.
Only sell a covered call at a strike where you would be genuinely happy to sell your shares.
Why Intel (INTC) Fits
The best covered-call stocks share three traits, and Intel has all three:
- Liquid options, so you get tight spreads and fair fills.
- Moderate volatility (roughly 20 to 40%), enough premium without the chaos.
- A stock you would hold anyway, since many investors already own INTC.
A Step-by-Step $200 Example
Setup: you own 100 INTC near $195. You sell one $200 call about a month out for $3.00.
In plain terms, you pocket $300 today ($3 per share on 100 shares), and you have agreed to sell at $200 only if the stock gets there. Here are the three ways it can finish:
| At expiration | What happens | Your result |
|---|---|---|
| Below $200 | Call expires worthless. Keep shares and premium. | +$300, and you can sell another next month. |
| Above $200 | Shares sold at $200. | $300 premium plus $500 gain equals $800. |
| Falls | Call expires worthless; shares drop. | $300 cushions it; you still own the shares. |
Picking Your Strike & Expiration
- Strike: slightly out-of-the-money, around 0.20 to 0.40 delta.
- Expiration: about 30 to 45 days out, where time decay works hardest.
- Volatility: higher implied volatility means a bigger premium, but bigger expected moves too.
The Starter Checklist
- Own 100 shares of a stock you are happy to hold.
- Check the options are liquid, with tight spreads.
- Pick about 30 to 45 days to expiration, near 0.20 to 0.40 delta.
- Sell only where you would happily sell the shares.
- Avoid writing through earnings, unless that is the plan.
- Know your breakeven, and have an exit plan.
Risks & When to Skip It
Conservative is not the same as risk-free. Three things to remember:
- Capped upside above the strike.
- You still own the downside. The premium cushions a drop but does not prevent it.
- Assignment can happen anytime the call is in-the-money, and a sale may trigger taxes.
Skip it when you are very bullish, since you would cap the upside you want, or right before earnings, when a gap can blow past your strike. And if INTC nears your strike but you would rather keep the shares, you can roll the call by buying it back and selling a new one further out for extra premium.
Covered Calls for Small Accounts
You do not need a big portfolio, just 100 shares. Reinvest the monthly premium and you are running a small account challenge: collect income, buy more shares, repeat. Keep your long-term holdings separate from your trading, and size every position sensibly.
The Options Income Series
- Options Income Investing for Beginners: Get Paid to Wait
- Wheel Strategy Explained: Cash-Secured Puts and Covered Calls
- Covered Calls vs Cash-Secured Puts: Pick Your Income Play
- Best Stocks for Covered Calls in 2026: How to Choose
- How Much Money to Start Selling Options for Small Accounts
- Cash-Secured Puts Explained: Get Paid to Wait for Stocks
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Frequently Asked Questions
Do I keep the premium if the stock never reaches the strike
Yes. The premium is paid to you the moment you sell the call, and it stays in your account no matter what happens next, whether the option expires worthless or your shares get called away.
What happens if INTC goes above my strike price
Your 100 shares get sold (called away) at the strike. You still keep the premium plus the gain up to the strike, so you walk away with a profit. You simply give up any move above that level.
How much can you actually make on Intel covered calls
It depends on the strike you choose, how far out the expiration is, and how much volatility is priced in. In the example above, a $3 premium on a roughly $195 stock is about 1.5% for the month. Think steady, repeatable income rather than a home run.
Is Intel a good stock for covered calls
It fits the profile well. INTC has deep options liquidity and moderate volatility, the two traits that make premiums worthwhile without wild price swings, which is why it appears on many “best stocks for covered calls” lists. As always, only write calls on shares you are comfortable selling.
Can I sell another covered call after one expires
Yes, and that is the entire idea. If your shares are not called away, you just sell a fresh call for the next cycle and collect premium again. Repeat it month after month and the income compounds.
Written by Zach. Sources: Fidelity, Schwab, OIC. Educational content only, not financial advice. Options involve risk.
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