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Strategies & Market Trends : Gersh's Option trades -- Ignore unavailable to you. Want to Upgrade?

To: Mark Johnson who wrote (623)	11/8/2007 7:41:13 PM
From: Mark Johnson	Read Replies (1) \| Respond to of 652

Easy money I think. CSCO reported slowing orders. I expect the stock to trade flat for some time because of this based on this uncertainty and don't expect it to trade above it pre earnings price of $32.75. I really like the idea of shorting the $32.5 November calls for a bid price of 7 cents. If you short 30 contracts you would need to front about $9k and you would earn about $210 before commissions, for a return of about 2.3% before commissions. This trade would be about a week long. If CSCO approaches $31.80, I would cover the short. This is kind of "dorky trade", with very little premium but it's almost a no brainer with CSCO having very little upside within the next few weeks.