CSCO Earnings Play – Bullish Setup into AI Boom! (2025-08-12)
# 🚀 CSCO Earnings Play – Bullish Setup into AI Boom! (2025-08-12) 🚀
💡 **Cisco Systems (CSCO)** is setting up for a potential post-earnings breakout. Fundamentals, technicals, and sector momentum all align for a **moderate-to-high conviction CALL play**.
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## 📈 Fundamentals Fueling the Bull Case
* **Revenue Growth:** +11.4% TTM – steady demand from enterprise & AI infrastructure
* **Margins Holding Strong:**
* Gross: **65.2%** 🏆
* Operating: **23.3%**
* Profit: **17.6%**
* **Earnings Consistency:** 8/8 quarters beat, avg. surprise **+5.1%**
* **Guidance Strength:** Forward EPS est. \$3.90 – confidence in profitability
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## 📊 Options Market Intel
* **Low Volatility:** VIX at 15.52 → calmer market backdrop
* **Call Bias:** Heavy OI in \$73 & \$75 strikes → institutions loading up
* **Put/Call Skew:** Leaning bullish
* **Gamma Setup:** Low vol = reduced whipsaw risk
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## 🔍 Technical View
* **Trend:** Trading above 20d (\$68.71), 50d (\$67.45), 200d (\$61.68) – clear bullish momentum
* **Resistance:** \$72.55 (52-week high) → breakout trigger zone
* **Support:** \$69.00 – defended by put concentration
* **Pre-Earnings Drift:** Steady climb → accumulation signs
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## 🌍 Macro Tailwinds
* AI & cybersecurity demand surging
* IT spending cycle favorable for enterprise tech leaders like Cisco
* Sector rotation favoring growth & infrastructure plays
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## 🎯 Trade Plan – Long Calls for Earnings Pop
**Type:** Buy to Open CALLs
**Strike:** \$74.00
**Entry Price:** \$0.85
**Expiry:** 2025-08-15
**Confidence:** 75%
📈 **Targets:**
* PT: \$2.00 (+135%)
* SL: \$0.42 (-50%)
* Time Exit: Within 2 hrs post-earnings if PT/SL not hit
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## 🛡 Risk Management
* Max Risk: 1 contract = \$85
* R/R Ratio: \~1 : 2.5 – 4.0
* Avoid overnight hold past expiry
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### 🧠 TradingView Takeaway
This is a **trend continuation earnings bet**. Strong balance sheet, bullish options flow, and favorable macro backdrop make CSCO a prime candidate for an earnings breakout.
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💬 **Question:** If CSCO clears \$72.55, do you see a \$75+ close by Friday?
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