IMHO, CSCO has an important resistance @ 20. If it managed to break it, I would be bullish on CSCO untill the next minor resistance @ around 21.50-22.00. I am thinking of 2 strategies: (all prices are taken from Bigchart, end of today, calculations are from Hoadley's option spreadsheet). Crd bull spread : Buy 1 Call Jan 17.50 @ 3.00 Sell 1 Call Jan 22.50 @ 0.60 Debit 2.40 or Ratio spread : Buy 1 Call Oct 17.50 @ 2.45 Sell 3 Call Oct 22.50 @ 0.15 Debit 2.00 Both will give a max profit if stock is @ around 22, a break even point at 19.50 - 20. Other than the smaller debit (thus max loss), the only difference that I can see is that the ratio spread gives me a positive theta if CSCO stays in the 20 range, whereas the Crd Bull Spread has zero theta. The draw back with the ratio spread is that if CSCO gaps up the next day, pass 22.50, the spread will start losing value. (As for volatility, I am not sure how to figure it out yet.) Am I wrong in my calculations somewhere? Any comments would help. TIA Cheers!!