Investors in Cisco Systems Inc. (CSCO) gained access to new options today, set to expire in December 2028. The put contract at a $110.00 strike price has a current bid of $19.00, allowing sellers to potentially lower their cost basis to $91.00 per share, compared to today’s trading price of $111.66. Analysts suggest a 67% chance the put contract could expire worthless, which would yield a return of 17.27% on the cash commitment, or 7.38% annualized.
On the call side, a $130.00 strike price contract bids at $20.35. Investors can earn a total return of 34.65% if the stock is called away by expiration. Approximately 46% of the current data indicates this call could also expire worthless, allowing sellers to retain their shares and collect the premium for a potential return boost of 18.22%, or 7.79% annualized.
Implied volatility for the put is 39%, while it’s 40% for the call. Cisco’s trailing twelve-month volatility stands at 34%.
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