Previously CCI bought the first lot of Cisco trade via Jan, ITM call options.
At that time CCI felt $17 was a good entry price.
Clearly, what I meant to say is $16 is a good entry price....lol.
That is where it is trading now.
Having looked a little more closely at past earnings reports the drop in revenues in some of the core products is a little disturbing. However, the overall fundamental value still seems sufficient to justify a trade.
Sold $16 June puts today for $.25 after commissions. If held for the next 10 days either
- the stock will continue to fall and the second lot of the trade will be acquired at an effective price of about $15.75.
- the stock will hold the $16 level and the portfolio will make about $1.5% in 10 days.