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Dan Nathan's Cisco Systems Trade

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On CNBC's Options Action, Dan Nathan spoke about a contrarian bet on Cisco Systems, Inc. (NASDAQ: 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.

 

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Posted-In: CNBC Dan Nathan Options ActionLong Ideas Options Markets Media Trading Ideas

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