The Money Tree

Safely Generating Income in Retirement

CSCO – Trade Results

Posted by mounddweller on November 21, 2011

Fellow Traders,

The purpose of this post is to share with you the results of my trade in CSCO.  I started this trade about a year ago when CSCO was trading at $20.21.  My strategy was to sell puts until assigned and then sell covered calls until they were called away.  As you can see below, that is pretty much the way it played out.  My results weren’t as good as I’d hoped as my overall objective is to average 1%/month or 12% annualized in my trades.

My ROIC was around 10%.  I might have done better had I been a little more aggressive at the beginning.  You’ll notice I didn’t have any open trades between late December 2010 and mid February 2011.  I also might have improved my results some if I had kept a closer watch on my puts and not have let them get so far ITM before rolling.  Not doing so resulted in having the stock put to me early and then I had to wait for several weeks before I could begin selling calls against the position.

Here’s a chart of CSCO for the period covered.

I plan to initiiate a new trade in CSCO very soon.  Currently, I’m considering the DEC $16 puts.  I’d be interested in selling them if the market continues to drop and I can get at least $0.16 for them.

Regards,

Troy

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One Response to “CSCO – Trade Results”

  1. All what I need about stock trading I found on this website…

    […]CSCO – Trade Results « The Money Tree[…]…

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