New Trade : CSCO

New TradeStock / Symbol: [private_monthly]Cisco Systems / CSCO[/private_monthly]

Option Strategy: calendar call spread
Price at trade post: $16.70

Reasoning: The standard deviation calculation for CSCO on August expiration puts the expected range between [private_monthly] 14.85 and 18.50. With that we're going to start out with a 17 strike calendar here using the Aug and Oct options. With a delta of .45 on the Aug calls and .47 on the Oct calls, we've got a fairly delta neutral trade with slight upside bias. If our upside or downside stops are triggered, we'll either add another calendar or close the trade, depending upon how much time is left before Aug expiration.[/private_monthly]

Trade Details:[private_monthly]

STO -8 CSCO Aug12 17 calls
BTO 8 CSCO Oct12 17 calls
for a max net debit of $0.30 per contract (day order, limit order). Current bid 0.24 / ask 0.28. If not filled today, ok to enter on Monday.


Cost/Proceeds $224.00
Option Requirement $0.00
Total Requirements $224.00
Estimated Commission $20.00


Max Risk: $224
Max Reward: $350 or 156% at $17 by Aug 17
Profit Range: $15.80 - $18.30 by Aug 17
Suggested upside stop: @ 18.50
Suggested downside stop: @ 15.50

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