Alan Knuckman's Cisco Trade

Bulls-Eye Option's Alan Knuckman spoke on Bloomberg Markets about a bullish options trade in Cisco Systems, Inc. CSCO.

He said the company makes a lot of money and from the trading standpoint, he likes the technical setup. The stock has been stuck between $31 and $34 and it targets $37, explained Knuckman.

To make a bullish bet, he wants to buy the June 30 call for $5. The trade breaks even at $35 or 1.45 percent above the current market price. The option has a high delta and it is going to act as a stock, said Knuckman. If the stock jumps to $37, the call is going to gain 50 percent.