Sell Alert: January 3, 2013

Marcus Haber | January 3, 2013

Sell Alert: January 3, 2013

Trade Details

Sell Cisco Systems (CSCO) January 2013 $20 Calls for $0.60 or better

Why?

As I suspected, CSCO was down on overall market concerns. There’s nothing stock specific that was causing the shares to drop. As such, it didn’t take long for the stock to rebound off the 20-day moving average.

Of course, we got some help from the fiscal cliff resolution, but that was also expected. The politicians cut it a lot closer than I anticipated, but a resolution was reached nonetheless. And of course, CSCO was a nice beneficiary of the good news.

We’ve moved quite a bit above the 20-day and the 50-day moving average, so let’s go ahead and lock in our profits. At the current price, we’ll be pulling in 55% gains. Nice work on another solid trade.