Time On Your Side

Last Friday, Dan Nathan did something that would make even the best alchemist green with envy: he turned time into money, and he did so using the calendar spread on Intel .

Thinking that Intel's earnings would not significantly move the stock, Dan sold the Jan 21-strike call for $0.35, and used the proceeds to buy the Feb 21-strike call for $0.60, net-net paying $0.25.

"The stock underperformed the implied move and is actually trading flat to off," said Nathan. "The stock will most likely stay pinned to that $21 level today as it is expiration."

His next move?

Buy back the Jan 21-strike call for $0.15 and sell the February 21-strike call for $0.60, collecting a tidy profit of $0.20.

• Intel Strikes a High Note
• 2 Tech Stocks That'll Make You Money: Manager

Questions, comments send them to us at: [e-mail]