Technology Stocks : Cisco Systems, Inc. (CSCO)


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From: Gottfried5/28/2012 2:46:17 PM
1 Recommendation   of 77183
 
"Getting A 17% Yield From My Cisco Position"

seekingalpha.com 

excerpt:

Option Strategy: Sell the October 2012 16 puts on CSCO for $1.15

Outcome 1: Cisco stays above $16 at the expiration of the option on October 19th and the investor picks up the $1.15 premium for an annual return of over 17%

Outcome 2: Cisco dips below $16 and the stock gets "put" to the investor for a cost adjusted $14.85 ($16 - $1.15).

my comment: a lot of bad things could happen in 5 months - not to CSCO but the world economy. If the stock is put to the writer, he might not like it any more
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