On Wed Nov 13 2019 Cisco released their earnings which were good but a drop in forward projections are probably going to sink the stock. Trading after hours on Wednesday saw the stock fall and I am expecting that will continue on Thursday, at least in the morning.
When a stock falls, investors who, like myself, sell put options for income or to build a portfolio, can benefit from much higher put option premiums. However the concern is to not end up holding short put contracts that are deep in-the-money as the stock continues to collapse.
This trade strategy article explains how the Put Options Selling Tool can be used to analyze the stock and formulate a plan as to what the stock may possibly do the day after an earnings miss and how to profit from it, as safely as possible.
The rest of this Cisco Stock (CSCO) strategy article is for FullyInformed Members.
Cisco Stock Earnings Miss – How To Profit With The Put Options Selling Tool – Nov 14 2019
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.