Key CSCO earnings report will be out after the closing bell today
For CSCO, it is the end of their 2011 fiscal year - Q4. So there should be Fiscal 2012 guidance given by Chambers as well.
This is important to me as I have 80 of the 12.50-strike naked put contracts short out to Jan. 2013 and they are already down near the margin-safe price of $13.75. This is one time when I need Chambers to deliver.
CSCO wasn't selling in the 13's the last time he gave guidance. A lot of prospective bad news should already be factored in. Generally for something like CSCO earnings I would temporarily get out just before earnings I did just that a number of months ago and it was sure the right thing to do as the stock promptly plunged from around $24 to the $19 area. But with the stock just in the 13's going into earnings, I'm going to hold tight and hope for the rest. I'll be rolling tomorrow if the stock really tanks below the margin-safe price.
You don't need to tell me when stocks in the naked put portfolio approach margin-safe prices as I watch them like a hawk. I know just when my methods call for rollouts and I strictly follow the discipline.