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November 25th, 2012 at 3:06 pm
The CSCO position was 10x, not 30x !
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CSCO/QC – Not very good weekly pricing to take advantage of. Fear of poor earnings has April $16 puts at .95 so I like selling those but mainly I just like CSCO long-term, maybe something like selling 2015 $15 puts for $2.50 and buying the 2015 $15 calls for $3.50 so you're in the $16.93 stock for net $16 and you get all the upside from CSCO for only the cost of the margin on the short puts + $1 cash. Also, since you don't have a cover on the long $15 calls and you are in the money, you can fearlessly sell short-term calls for income. In fact, that's such a nice trade, let's add 10 of those to the Income Portfolio – we'll play for good earnings and do a sale after they pop and, if they don't pop, we're happy to DD at lower prices.