We made a great case for CSCO during the Webinar but we built it in Chat GPT and Bing and Chat GPT is having issues with their history and Bing never saves stuff so take my word for it – and Warren’s:
🤖CSCO has a strong financial position with a low p/e 12.5 and $16.7Bn net CASH!!!
CSCO has demonstrated a commitment to AI with several ongoing AI initiatives, including its acquisition of AppDynamics, which provides real-time monitoring and analytics for application performance. This acquisition has helped CSCO expand its reach in the fast-growing AI market.
Moreover, CSCO is well-positioned to benefit from the increasing demand for cloud-based services and the internet of things (IoT). The company is already a leader in the networking hardware market, and it is expanding its presence in the software and services market as well. As more devices become connected to the internet, the demand for CSCO’s products and services is likely to increase.
Overall, CSCO is a financially sound company with a strong presence in the technology industry, a commitment to AI technology, and an expanding market for its products and services. These factors suggest that CSCO could be an attractive long-term investment opportunity.
CSCO is going to benefit from more traffic due to AI and they have several AI initiatives already ongoing and Warren came up with some other great ideas they could pursue.
So, for the LTP, let’s add:
- Sell 10 CSCO 2025 $50 puts for $5.90 ($5,900)
- Buy 20 CSCO 2025 $45 calls for $9.30 ($18,600)
- Sell 20 CSCO 2025 $60 calls for $2.85 ($5,700)
That’s net $7,000 on the $30,000 spread with $23,000 (328%) upside potential and, of course, we’d love for them to drop 20% so we can DD but I doubt that will happen so we’ll probably have to be content with the $23,000 gain.