12/11/17 CSCO has been a strong uptrend from a giant earnings gap.
Consolidation here has led to a tight triangle and an explosive move today. Looking for a break above $38 @ $38.20 to play the strength. Good RSI and weekly trend too.
Profit: 39.45 Entry $38.10 Stop $ 36.70
Jan18 38 Calls for $0.80 OBO on a break of $38.10.
Trade active
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The trade was entered and has been consolidating above the $38 round number, which is a positive sign, and the DIA and SPY have been battling at new highs of their own. The QQQ was positive today, so we are looking for followthrough on Monday.
Trade closed: target reached
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Prices took awhile to move to the profit target, but after another nice consolidation below $39, the target was hit yesterday. I sold 2/3 of the position as the profit target for the 2nd consolidation was hit as well. Options sold for $1.6 on 1/5/17. Continuing to hold the 1/3 postion if $40 is a price magnet.
Comment
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Prices have hit $40 level and continued upward. I am continuing to hold 1/3 position with a trailing stop.
Comment
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I should I said that I took the 38 stock during the options expiration. I am holding the stock with a stop loss.