Cisco Systems Stock Looks Ready to Bounce Off Bullish Trendline

A shift in the options pits could boost CSCO, too

Digital Content Manager
Mar 29, 2022 at 2:57 PM
facebook X logo linkedin

The shares of Cisco Systems Inc (NASDAQ:CSCO) are up 0.2% to trade $55.28 at last check. The equity has found a floor at the $53.50 level since cooling off from its Dec. 29, all-time high of $64.28. Another reason investors should not shy away from the tech concern just yet is that CSCO could soon start chipping away at its 12.8% year-to-date deficit, given the equity has just pulled back to a historically bullish trendline that has preceded major rallies. 

Digging deeper, Cisco Systems stock recently came within one standard deviation of its 320-day moving average. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, comparable moves have occurred three times in the past three years, with CSCO enjoying a positive one-month return every time, while averaging an 8.1% rise. A similar move from its current perch would put the equity back over the $59 mark for the first time since mid-January.

CSCO 320 Day

An unwinding of pessimism in the options pits could blow additional tailwinds for Cisco Systems stock. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day put/call volume ratio stands higher than 97% of readings from the past year. This indicates long puts have been getting picked up at much faster-than-usual clip. 

What's more, the security sports attractively priced premiums at the moment. This is per CSCO's Schaeffer's Volatility Index (SVI) of 20%, which sits in the low 18th percentile of its 12-month range. In other words, options traders are pricing in relatively low volatility expectations right now.

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.

Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!




Rainmaker Ads CGI