Cisco is looking quite strong at the moment and I will be buying the stock and selling OTM Call options as well as selling Puts.
The stock closed on Thursday at $25.26 and Morningstar ‘Fair Value’ is at $26. The Dec $26 Call can be sold for 0.39 cents and the Dec $24 Put for 0.31 cents.
Price is butting up against a bear trend line that has been in effect since Nov 2007. There is strong resistance at $30 but I suspect the stock might head that way. It recently broke back above the daily Ichimoku Cloud:
CSCO monthly:
CSCO weekly:
CSCO daily: I beg to differ with Elliott wave here. We’ll see who is correct!
CSCO daily Cloud:
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