Shorting Out-of-the-Money Cisco Puts and Calls Provides Shareholders Extra Income

Over the last month, selling short out-of-the-money (OTM) Cisco Systems (CSCO) put and call options has worked well for existing shareholders. Moreover, for the next month, it looks like a good play as well.

CSCO closed at $119.52 on Thursday, June 18, up slightly (1.87%). Over the last month, the stock has stayed in a narrow range, as I suggested it might in my last Barchart article. That makes it ideal for selling short covered calls and cash-secured puts.