CSCO Long trigger is close, Chart from Breakpoint Trades

CSCO not only is this a nice H&S, it is also a pretty good cup and handle which has been an awesome pattern over the last year if you had the guts to go long. The H&S measures to about 20% rise from here, not bad with some type of options credit or debit spread, which limits the upside but protects the downside and minimizes the cost into the trade.

Instead of a cost, you could actually get a credit from selling the options, and some people look at this as "income" which is one of the great lies of the options market. IT IS NOT INCOME. As soon as you place the trade you have an asset and a liability, they are the same value. You have not produced income, you have sold time. True though, if the trade moves as expected, you reap the value of that time, over time.

When I was a newbie my 20 year experience CBOE and Swiss markets buddy told me "never sell naked options". A few years ago, once, I didn't listen to him...I did that once.