The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (

Top Gun Options

) -- Our strategic mindset for

Cisco

(CSCO) - Get Report

at

Top Gun Options

is currently market neutral.

Target

: Our target is CSCO trading at $19.56. If you want to learn more about this target and the tactic we've employed in addition to watching Top Gun Traders manage skill-based virtual portfolios live in the market, check out our free Trading Flight School by registering here:

www.topgunoptions.com/flight-school

.

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Commit Criteria

: Implied volatility should increase as CSCO approaches its earnings announcement on Feb. 8. We will attempt to ride this increase with a strangle on the March expiration options. Here's a look at our proprietary earnings and trade tool:

Tactic

: Opening 50 CSCO Mar 2012 19/20 Strangle @ $1.30 Debit

Tactical employment

:

Buying to Open 50 CSCO Mar 2012 19 Puts

Buying to Open 50 CSCO Mar 2012 20 Calls

As a Strangle

For a net debit of $1.30 (50 @ $130 for a total of $6500.00)

Maximum Gain: Unlimited

Maximum Loss: $6500.00 max

Mid-Course Guidance

: We will be watching for IV changes and major price movements in CSCO as we get closer to the earnings announcement on 2/7.Profitability Target: We would like this trade to go up 25% to a position price of $1.63.

Exit tactics

: Stop Loss of 15% with a position price of $1.11; profit target of 25% with a position price of $1.63.

Firing Line

: We will not hold this position in the Advanced Model Portfolio over the earnings announcement. In all cases exit before the end of trading on Feb. 7.

Make sure you stop by the

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page and click "Like" to get a copy of our proprietary 15-page trade plan. Happy hunting and make sure you hedge!

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.