On CNBC's "Options Action," Tony Zhang said that 2020 is going to be a turnaround year for Cisco Systems, Inc. (NASDAQ:CSCO). He thinks that the stock is currently fairly valued, but he expects it to break out $48 on earnings. The company is going to report on August 12.
Zhang said that the options market is implying a move of 5.8% move in either direction and its average move on earnings is 7.4%. To capture a potential breakout, Zhang wants to buy the $47.50/$52.50 call spread for a total cost of $1.50.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
The trade breaks even at $49 or 3.31% above the closing price on Friday and it can maximally make a profit of $3.50.