CSCO appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Jan '11 22.50 covered call for a net debit in the $21.15 area. That is also the break even stock price for this trade. This covered call has a 103 day duration, provides 5.92% downside protection and a 6.38% assigned return rate for a 22.62% annualized return rate (comparison purposes only). A lower cost hedged play for this stock would use a longer term call option in place of the covered call stock purchase.
Cisco Systems (CSCO: $22) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week. CSCO carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.
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