Comments on: Trades – Cisco Systems Inc (CSCO) Put

By: writing2reality

writing2reality — Tue, 12 Feb 2013 21:59:22 +0000

Thanks AAI! Yeah, I think the tech companies (APPL, MSFT, GOOG, ORCL, and CSCO) hoarding cash will have little recourse but to raise their dividends or doing significant buybacks. In fact, I’m not sure what the $332 billion combined in cash won’t buy… so for me, it is a slight speculative play (on the dividend strongly increasing), but I think CSCO will be be a good purchase in the long run.

By: All About Interest

All About Interest — Tue, 12 Feb 2013 20:15:46 +0000

At this rate, you will be a pro at selling puts in no time! I do like CSCO but haven’t done enough research on the company. They do have a ton of cash in the bank. My INTC position is so large though I’m not looking to add another tech position at this time. If I did, CSCO would probably be high on the list.

By: writing2reality

writing2reality — Tue, 12 Feb 2013 19:25:22 +0000

I agree, it is certainly a fascinating, and truth be told, appealing option (pun intended). I mean, if I could consistently get a 20-40% return from every option I sold, surely owning the underlying stock would be irrelevant as I built up my financial nut. Thought provoking for sure!

By: JC @ Passive-Income-Pursuit

JC @ Passive-Income-Pursuit — Tue, 12 Feb 2013 17:31:38 +0000

I was thinking about it, and every put that I sell I would want to expire worthless so I keep the premium and can keep selling more puts until I’m getting very close to FI then start having them be assigned. The returns on options that expire are usually much better than holding the stock, especially from an income perspective.

By: writing2reality

writing2reality — Mon, 11 Feb 2013 23:01:52 +0000

Haha wouldn’t we all? Yes, it was trading just above $21, but was still a surprising premium for such a short period (5 trading days).

Honestly, I wouldn’t mind either way, but if I had to pick, I’d go with passing on the assignment this go around, sell another put and have it assign on that one. That way in just over a week I could double up on picking up premiums, and hopefully double up on the discount on the purchase of the stock.

By: JC @ Passive-Income-Pursuit

JC @ Passive-Income-Pursuit — Mon, 11 Feb 2013 22:52:34 +0000

Investing would be easy if we could get an 87% annual return, I could not invest any more money and hit FI in 2-3 years. That’s a pretty hefty premium, I’m assuming that it was trading right around the $21 mark when you sold it. Looks like a good trade since you want to own CSCO. Got a preference on how it works out?