Squashed Amazon Rumors Boost Cisco Systems Stock

CSCO stock recently flashed a reliable buy signal

Jul 19, 2018 at 10:03 AM
facebook X logo linkedin

The shares of Cisco Systems, Inc. (NASDAQ:CSCO) are trading up 1.6% at $42.82, after a top cloud-computing executive at Amazon (AMZN) said the company's Amazon Web Services (AWS) will not begin selling network switches. The initial AMZN rumors sent several tech stocks tumbling last week.

In fact, that Amazon-related pullback likely created a buying opportunity in CSCO stock, considering it brought the shares to within one standard deviation of their 200-day moving average. According to Schaeffer's Senior Quantitative Analyst Rocky White, in the three most recent times the stock has pulled back to this trendline after a lengthy stretch above it, Cisco has averaged a one-month gain of 4.05%, with 100% of those returns positive.

Plus, the Dow stock is holding firmly above its +10% year-to-date return level at $42.13 -- and those wanting to bet on a bigger bounce from here may want to consider using options. CSCO's Schaeffer's Volatility Index (SVI) of 25% ranks in the 28th annual percentile, indicating short-term options are pricing in relatively low volatility expectations at the moment.

Today, options traders are targeting the front-month July 43 call -- the most active Cisco contract in early trading -- and it looks like new positions are being purchased here for a volume-weighted average price of $0.19. If this is the case, breakeven for the call buyers at tomorrow's close is $43.19 (strike plus premium paid).


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI