Dan Nathan's Cisco Systems Trade

On CNBC's Options Action, Dan Nathan spoke about a contrarian bet on Cisco Systems, Inc. CSCO. He showed the performance of the stock in the last 15 years on a chart and concluded that it looks really bad. The stock is trading at a lower forward price-to-earnings multiple in comparison to other laggards in the Dow Jones Index. Nathan added that Cisco Systems looks like a coiled spring and it could spike to $40 in no time, but the CEO should be replaced with someone who can tell the story for this company. Nathan would make a bullish bet in this name by purchasing the July 30 call options for $0.70 or the January 2016 30 calls for $1.20.