Tuesday, April 5, 2011

Cisco Trade - A favorable risk/reward indicates it is time to initiate a trade

Cisco has disappointed investors over the past few quarters, and the stock has performed very, very poorly especially in the context of a strong overall stock market.

The following article contains reasons why the risk/reward for Cisco may have finally become favorable, and describes an options strategy to initiate a trading position in the stock.

http://seekingalpha.com/article/261787-why-cisco-finally-represents-a-good-risk-reward-opportunity

Coincidentally, today's news contains info of an internal email from CEO John Chambers to Cisco employees. The above article was written prior to the release of that email. Chamber's email seems to emphasize the need to restore credibility with investors, sharpen the focus of the business, and to expect changes throughout the year. That email can be interpreted in many ways, but to me it just reinforces that this is a good time to take a position for a trade in Cisco.

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