Bold Trade in Cisco (CSCO) at Noon ET today after an 8000-lot of Weekly 19 calls trades on the networking giant for 45 cents per contract when the market was 44 to 45 cents. 22,199 Weekly 19 calls now traded, which makes it today’s fourth most actively-traded equity options contract. Cisco’s May 20 call is the third most active. 24,250 changed hands. Total volume is 125,000 calls and 50,000 puts, while 30-day ATM implied vols are moving up 3.5 percent to 37 ahead of this afternoon’s earnings release. The Weekly 19 straddle is trading at 5.7 percent of spot. Meanwhile, the one sigma post-earnings daily trading range based on skew is $17.15 to $20.44. Shares slipped 2.1 percnet on 2/9 when earnings were last reported.
About the Author (Author Profile)
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.