Daily Sell-Side Options Strategy | Surge in the semiconductor sector, Intel and SanDisk hit new highs in the previous session, how to use options to collect rent?

I. Market Barometer

The semiconductor sector led the gains in the US stock market in the previous trading session.Stocks in the AI chip and memory supply chain surged collectively, with significant increases in overall sector volatility.The current popular stocks have seen substantial short-term gains and are subject to frequent event-driven catalysts, with implied volatility at recent highs. A sell-side options strategy can enhance returns and reduce holding costs by collecting premiums, catering to low-risk return enhancement needs in volatile markets.

II. Focus on Hot Targets

1、 $Intel (INTC.US)$: Expectations of cooperation with Apple as a contract manufacturer fueled a sharp rise in stock price

$Intel (INTC.US)$Previous trading day closed at $108.15, with a gain of 12.92% on the day. The key catalyst was a Bloomberg report.$Apple (AAPL.US)$Engaging in preliminary discussions with Intel, considering it as a backup supplier for chip contract manufacturing, while the company’s AI chip business is proceeding smoothly, opening up long-term growth potential for Intel's contract manufacturing business.

Wall Street institutions have recently raised their target prices for Intel. After the earnings release, Tigress Financial increased its target price to $118. Analysts' average target price stands around $83, and the current share price exceeds this average, partly reflecting market optimism about AI-driven growth and contract manufacturing prospects. Going forward, key focuses will include the progress of 18A mass production ramp-up, fulfillment of major customer orders from external contract manufacturing, and the sustainability of tight CPU supply and demand. Technically, the RSI has entered overbought territory, suggesting possible pullback pressure from profit-taking in the short term.

2、 $SanDisk (SNDK.US)$: Explosive demand for AI storage drives stock above $1400

$SanDisk (SNDK.US)$Previous trading day closed up 11.98%, hitting an all-time high of $1418.88 intraday, with cumulative year-to-date gains exceeding 490%. The core catalyst was better-than-expected demand for high-bandwidth memory in AI servers, with IDC analysts noting that this cycle in the memory industry could break historical volatility patterns, further strengthening its growth characteristics.

The company’s fundamentals have entered a phase of explosive growth, with the stock price continuously reaching new highs in the short term. The fiscal Q3 2026 earnings report showed revenue of $5.95 billion, up 97% quarter-over-quarter, and non-GAAP EPS of $23.41, far exceeding market expectations of $17.00. Gross margin climbed to 78.4%, a sequential increase of 27.3 percentage points, with the primary driver of significantly expanded profitability coming from the data center business.

III. Seller Options Strategy

1. Sell 1 lot$Intel (INTC.US)$20260522 130C, estimated holding cost (for reference only): $10815 ($108.15 × 100)

For investors holding $Intel (INTC.US)$ Intel has clear industry event catalysts, with significant short-term daily gains and technical indicators entering the overbought zone. Selling short-term out-of-the-money call options allows for capturing high premiums under current implied volatility, reducing the cost of existing positions. If Intel's stock price continues to rise, existing holdings can be sold at a reasonable price to lock in profits.

2、Sell 1 contract $SanDisk (SNDK.US)$20260618 1000P, estimated required margin (for reference only): $100,000 ($1000 × 100)

For those who missed this wave of storage market rally and did not hold $SanDisk (SNDK.US)$ , they worry about a short-term pullback if buying the underlying stock now.

By selling cash-secured puts, if the stock price continues to rise or remains volatile at high levels, option premiums can be collected to improve the annualized return on idle funds. If the stock price pulls back to near the strike price, it also offers an opportunity to enter the market and position for core storage targets at a pullback price.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make the most of the options seller zone to understand income strategies for selling options,Earn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

Editor/Doris

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