Buy to open the CSCO January 27 calls (CSCO160115C00027000, $0.53, up $0.05) at current levels.

Dear Momentum Options Subscriber,

I have a New Trade this afternoon on a tech favorite with a bullish chart. Shares are currently just under $27, but they could make a move towards $28-$29 by mid-January. If so, the call options I’m recommending will easily double from current levels.


Cisco Systems (CSCO, $26.96, up $0.23)

Buy to open the CSCO January 27 calls (CSCO160115C00027000, $0.53, up $0.05) at current levels.

I like these call options at current levels to play a run past $28, and you can use a Limit Order up to $0.65 to get the best fill.

These are the regular monthly options that expire on Jan. 15, 2016, and I will provide the parameters of the trade in tomorrow’s Pre-Market Update.


Support is at $26.50, with risk to $26 on a close below this level. A “golden cross” formed earlier this month, which is why I think shares can make a push past the major moving averages.


All prices given in this update are current as of 2:35 p.m. EST.

I hereby disclose that I will be participating in the aforementioned trade(s). Every new Momentum Options recommendation is listed with the price at which I entered my own position. If the price is slightly different than my recommended entry or exit price when you receive the alert, don’t let that keep you from getting into or out of a trade. Occasionally, you might even get a better “fill” price than what is posted in the Open Trades and Closed Trades.

Trade on!

Rick Rouse
Editor and Chief Options Strategist
Momentum Options