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Today, we’re opening a new bullish trade on Cisco Systems (CSCO). Networking stocks have been a bullish favorite of ours for a while now because they cover one segment of the U.S. economy that has seen continuous investment during the ups and downs in the economy during the past few years. Demand for CSCO switches and routers remains sky high — accounting for approximately 45% of the company’s revenue, with a 63.1% gross margin — and we anticipate it will remain so.
CSCO is also a strong dividend play. With the yield on the 10-year Treasury dropping back below 1.6%, CSCO’s 3.35% dividend yield is looking better and better. Plus, with the company’s $65 billion cash pile, its dividend is incredibly secure.
Buy to open the CSCO November 32 Calls (CSCO161118C00032000).
You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our .
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