Wednesday, February 27, 2008

Cisco Works this Time

While the market was falling apart I picked up some shares of CSCO as it completed a perfected TD Sequential countdown.  The entry point was very close to the stop-loss so I didn't worry too much.  (That is what is so cool about the TD Sequential and Combo, they have well defined risk)  The trade didn't work out and I was stopped out for a small loss. 

The other day I pointed out that CSCO finished another TD Sequential just as an analyst upgraded the stock.  After the post pop sell-off occured I couldn't help but pick up some July CSCO in-the-money calls for 3.50.  Thanks to better market conditions, I'm sitting on some big gains right now with those calls being priced at 4.80.  The really cool thing is that I expect to see CSCO price to reach 27.50, which would mean a call price of around 5.80. Tags: Tags:


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