Jim Cramer Blog

There could be a trading opportunity early Monday morning in Cisco. The stock closed down .30 on Friday, bringing it to $21.67. Currently, the Apr 20 calls are trading at $1.80. This means that there is only .13 of intrinsic value left in this option. Intrinsic value mainly deals with the time until expiration of a stock option. In this case, this option expires the 3rd Friday of this month (3 weeks). This stock could easily move enough to the plus side in the next three weeks to have a substantial profit. On Friday, the stock went down .30 and this option went down .20. A 30 cent swing to the plus side this week could yield an 11.1% return on your investment. If the stock opens flat, buy Apr 30 calls between $1.70-1.90.