Cisco Systems (CSCO) is off 6 cents to $18.16 and the CSCO April 17 put is the most actively traded equity options contract in the first hour of trading today. The top trade is 2015-contract block at the 20-cent asking price (market was 19 to 20 cents). The next biggest is a 529-lot, also at 20 cents. Beyond that, most of the action has been smaller sizes. 13,252 traded vs. 29,907 in open interest. The puts are currently 6.3 percent out-of-the-money and have a delta of -.21. April equity options expire in 37 days and CSCO earnings will not come in to play prior to the expiration, as the company is expected to report around May 12. Meanwhile, implied volatility in Cisco has been steady in recent weeks in the mid-20s, compared to a 52-week high and low of 45 and 20. Shares are down nearly 35 percent over the past ten months and have taken a hit after each of the past four earnings releases.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.