Cisco Systems (CSCO) is up 57 cents to $16.31 and among thirty Dow stocks holding gains today. Only Dow member McDonald’s (MCD) briefly dipped into the red Friday morning, but MCD is now showing gains along with the other 29 components of the industrial average. Meanwhile, CSCO options action is noteworthy, as 74,000 calls and 20,000 puts traded on the networking giant so far. Nearly 60 percent of the call volume is in the August term, being led by Aug 17 call buyers (both firm and customer). 31,800 traded and, while open interest is sufficient to cover, data from ISEE suggest opening activity. Aug 16 and 18 calls are the next most actives. CSCO is up 8.1 percent from the 10-month lows seen on July 24 and today’s flow seems to relect expectations for additional gains over the next two weeks. Cisco reports earnings the afternoon of August 15, which, to make things interesting, is the Wednesday before the Aug expiration. Shares lost 10.5 percent on 5/10 after 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.