Sticking With Cisco
I expected to have several earnings trades today. Cisco (CSCO) of course, but I also thought to take some action in Network Appliance (NTAP) and Whole Foods (WFM). But sometimes we don't get what we expect. I am making a trade in CSCO, so I will start there.
CSCO looks a bit vulnerable to higher than recent expectations or a sell-the-news reaction. I am long the shares and will continue to hold them as I still like the stock. I would buy more if they fall below $20, but I am not ready to chase the stock. Therefore, I will put my two theses to work. As a trade, I would consider going long the March $21 put and short 2x February $20 puts for $0.35. This is my approach for a trade....310 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.