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To: The Ox who wrote (2820)11/14/2013 11:00:02 AM
From: robert b furman1 Recommendation

Recommended By
The Ox

  Respond to of 8280
 
Hi OX,

I agree with that.

Those big companies do NOT turn on a dime - it takes quarters.

Csco has made many acquisitions which sets them up for WIFI area networks that are secure.Just think no more wiring cat 6 and all of its costly labor to install - just hang an antennae and encrypt it with software.

Mobility and wireless everything through satellites has been a long time theme whose time has/is come /here.

I had sold some 15 puts last month for 42 cent expiring 2015 Jan

I sold some more just now.

If put to me I'll own csco for 14.58 and it will yield 4.7 %.

I sell puts into spikes down at an exercise price that has long term monthly support and if put to me almost doubles my return with the better dividend yield.

screencast.com

I only do it on stocks I would like to own and pay a 4 % + dividend.

The worst that happens is I build a revenue stream of dividends which have the best tax rates over everything.

The best is I keep the money.

I had sold some 17's ,which I sold before earnings hoping to see this miss.

So now I've worked them into 15's - which bump the yield if assigned.

When I do those selling of puts I have Scottrade "total view".

Often you can see where institutional buying comes in.

Just 5 minutes ago there were 700,000 plus orders to buy at 21.00 vs 100,000 orders to sell at 21.01 - I think that is institutional support coming in for csco @ 21.00.

If so we'll meander here for 3-7 days and work up into the mid 21's and hopefully the puts can be bought back in the 20's with the time premium decaying 3-4 cents per month on sideways action over the next several months.

Meanwhile I'll hold the 1260 bucks some one paid me to insure csco does not go below 15 on them.

Its not a big yield but it does beat what scottrade pays me for idle cash in the account.

Bob