With Cisco up about 10% over the past 3 months, how should you game this stock into and in the wake of Wednesday earnings?
Seems like a good time for Fast Money 360. Find out what fundamentals, technicals and insights from the options world all suggest lie ahead for this stock!
FUNDAMENTALS
Broadpoint analyst Mark McKechnie is bullish. He tells Fast Money, Cisco is a solid company whose product cycles are hitting on all levels.
”We expect a clean beat,” he says.
However Cisco is more than an earnings story. As a maker of technology infrastructure, investors typically look to CEO John Chambers for his outlook as a barometer for the broad economy.
“I think he'll say the U.S. is strong and emerging markets are strong,” speculates McKechnie. However, because Europe represents 20% of his business Cisco may need to tone down its outlook a touch.
So how should you trade if a weaker than expected outlook pulls down the stock?
”We'd be aggressive buyers,” says McKechnie.
CHARTS
Oppenheimer’s Carter Worth is also bullish. Patterns in the charts lead Worth to recommend owning Cisco's right here. ”The stock's appears to be in a steady uptrend,” he explains.
Where does the uptrend lead?
According to his technical analysis, “we think its headed to 34,” Worth concludes.
OPTIONS
Options activity suggests to Pete Najarian no matter what Cisco says, the stock won’t move very much. ”People are pricing in a very modest move,” he explains, and right now it’s completely split between calls and puts.
(In other words split between investors betting on moves higher and lower.)
”Either way, I’m not expecting a big move for Cisco,” Najarian says.
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .
Trader disclosure: On May 12, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly Owns (FXE) Puts; Kelly Owns (FXB) Puts; Terranova Owns (PFE), (GLD); Terranova Owns Gold; Karabell Owns (GOOG), (AAPL), (IBM), (CSCO), (TIE), (GS), (C); Levy Owns (GS), (GS) Calls
For JoeTerranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (DRYS)
For Brian Kelly
Kanundrum Capital Is Short (IBM)
Kanundrum Capital Is Short (DB)
Kanundrum Capital Is Short (BCS)
Kanundrum Capital Is Short Yen
Kanundrum Capital Is Short Euro
Kanundrum Capital Is Short British Pound
Kanundrum Capital Is Short Swiss Franc
Kanundrum Capital Is Short (FDX)
Kanundrum Capital Is Short (DE)
Kanundrum Capital Is Short (XLK)
Kanundrum Capital Is Short (XLI)
Kanundrum Capital Is Short (XLY)
Kanundrum Capital Owns (TLT)
Kanundrum Capital Owns (GLD)
Kanundrum Capital Owns (GFI)
Kanundrum Capital Owns (AUY)
Kanundrum Capital Is Long U.S. Dollar
For Jared Levy
Peak6 Investments is Long And Has An Options Position In (GLD)
Peak6 Investments is Long And Has An Options Position In (IBM)
Peak6 Investments is Long And Has An Options Position In (INTC)
Peak6 Investments is Long And Has An Options Position In (CSCO)
Peak6 Investments is Long And Has An Options Position In (VZ)
Peak6 Investments is Long And Has An Options Position In (AAPL)
Peak6 Investments is Long And Has An Options Position In (MSFT)
Peak6 Investments is Long And Has An Options Position In (BA)
Peak6 Investments is Long And Has An Options Position In (BEAV)
Peak6 Investments is Long And Has An Options Position In (GS)
Peak6 Investments is Long And Has An Options Position In (JPM)
Peak6 Investments is Long And Has An Options Position In (C)
Peak6 Investments is Long And Has An Options Position In (BAC)
Peak6 Investments is Long And Has An Options Position In (WFC)
Peak6 Investments is Long And Has An Options Position In (M)
Peak6 Investments is Long And Has An Options Position In (JCP)
Peak6 Investments is Short And Has An Options Position In (GOOG)
Peak6 Investments is Short And Has An Options Position In (HPQ)
Peak6 Investments is Short And Has An Options Position In (DELL)
Peak6 Investments is Short And Has An Options Position In (SWKS)
Peak6 Investments is Short And Has An Options Position In (TIE)
Peak6 Investments is Short And Has An Options Position In (XLF)
Peak6 Investments is Short And Has An Options Position In (DB)
Peak6 Investments is Short And Has An Options Position In (GILD)
Peak6 Investments Is Short And Has An Options Position In (LPX)
CNBC.com with wires