Monday, November 26, 2012

Cisco Covered Calls Launched... Yet Again

Long time readers will recall that CCI has been selling calls against $10 LEAPs in Cisco (CSCO) for awhile. The last post on these trades (click here) was in September when Oct $19 calls were sold.   Somehow it appears that CCI forgot to post the trade when that position was covered in October (my bad).  Overall that trade netted $.20/contract.  This  resulted in a 2.5% gain in a few weeks based on the leverage from the LEAP position.  Overall 6% in premium has been collected since Sept.

With Cisco rising back to $19 today, CCI sold the Dec $19 calls against the position for a credit of $.30/contract today.  CCI is expecting CSCO to pause/pull back after its recent run up, and would intend for this option premium to be harvested in the short term...yet again.   However, if the stock continues to rise  it might be time to exit both legs of the trade for a very impressive, leveraged profit. 

Stay tuned.

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