Cisco reported earnings Wednesday after the bell and the results generally seemed to please the street. The stock rallied to $18.60 today.
Readers recall that CCI has owned the Jan 12 $10 calls as leveraged play in this stock for quite a while. Unfortunately we also owned Nov. $16 covered calls which in this case has just stunted any gains in the position.
We rolled the Nov$16 calls out to Jan $19 covered calls today. So after several iterations of options plays the portfolio is now essentially long the Jan $10-$19 call spread. As of today, this lot is cumulatively showing a small gain, but a reasonable upside opportunity was missed because the covered calls limited growth.
With this earning catalyst behind us, we will be looking for the right opportunity to close out of this position.