CSCO - Potentional breakout 32,5 USDCSCO - Potentional breakout 32,5 USD, it could go to 33,7-34 USD, if not stoploss under 32
CIS trade ideas
THE HIGHER THEY GO, THE HARDER THEY FALL : a simple question ...A simple question for you to consider :
Why should future return of a (stock/crypto currency/fx pair) always be the same as their past returns? When the investors comes to believe that (stock/crypto currency/fx pair) is guaranteed to make money in long run, won't the market end up being wildly overpriced? and once that happens how can future returns possibly be high?
CSCO covered strangleSold the OCT 20 30/32, ~ 30 deltas, 58 days, @ 40% IV Rank now, (I missed my chance selling when the IV was higher before earnings )
I'm sitting on 3 lots of stock here with 31.64 cost basis. I could have just sold the 32 call against my stock position, but it seems to make more sense to sell the strangle as it brings in more premium and both the call & put won't be assigned. I'm open to acquiring more CSCO stock at 30. A number of fundamental bullish factors should provide support the stock price:
- Free cash flow yield of 4.6%
- Dividend yield of 3.75%, payout ratio 56%
- Both CFRA and Trefis give a higher 'fair value' around $33, Credit Suisse "outperform" rating
- Valued based on 2.43 operating earnings and 5% earnings growth rate over next 3 years.
Cisco going long next daysWe will see a small moment here!
The earnings levels and the multiframe analysis shows us this long position.
CSCO Follow Through Head and Shoulders PatternThis play is a decent look in our opinions. We aren't concerned about the fundamentals so much as stated on the chart. We see an inverse head-and-shoulders pattern appearing. It's a slower mover so the consolidation can take a bit of time. After that period is over, we do see a potential gap up in the long run. Maybe it be an announcement of a spinoff that would be needed in the near future, in our opinions. Or simply just buying value. This seems to be a large cap that can give a smoothish ride, if there's even such a thing in this game!
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CSCO looking to move back upCSCO created an ugly gap a short while ago due to an earnings report, however I feel investors overreacted so I placed buys down there. Volume at the bottom was excellent and we got a nice wick on daily.
With volume increasing, I think that CSCO is now ready to move back up towards the sell zone, or to at least fill the gap.
Fundamentally speaking, I think companies with interests in cybersecurity are huge buys right now - we have been seeing a web startup bubble - but cybersec is still relatively new and has a lot of room for growth IMHO.
$CSCO's rally from $00.08 to $80.00 in log-scale from 1990-2000$10,000 invested at $0.08 would grow to $1,000,000.
This chart is an amazing run that everyone should have a look at.
When we look at the chart of $BTCUSD or other monster gains in stocks or in any market, we often see 75% retracements and many 50% retracements, but only 1 50% retracement in this chart of $CSCO.
I remember the top very well and not many could believe that it would top since it had been rallying so pervasively for 10 years.
Whenever you think that anything can keep growing forever, remember this chart to remind yourself to always look at your investments rationally.
Cisco peaked here and hasn't made a new high since, for 17 years now.
Why did $CSCO peak right then?
Research it and see if you can find out why.
Tim
12:18AM May 31, 2017
Jump on earningsJust want to give a shout out! I believe this stock will rise post earnings results.
