In the high-stakes world of big-time investors, a high roller has chosen to gamble on a downward trajectory for Cisco Systems.
A thorough analysis of Cisco Systems’ (NASDAQ:CSCO) options trading history unveils a series of 18 unusual transactions. A closer examination of these trades reveals a nearly even split in market sentiment—44% of these investors showed bullish tendencies, while 55% leaned towards a bearish outlook.
A breakdown of these trades highlights 6 puts, amounting to $401,040, and 12 calls, totalling $632,671.
Targeting the Bullseye: Cisco’s Projected Price
Drawing on the Volume and Open Interest data for these contracts, it becomes evident that our big-money investors anticipate a fluctuation in Cisco Systems’ price between $47.0 and $55.0 in the upcoming three months.
Cracking the Code: Volume & Open Interest Metrics
As a key tactic in options trading, monitoring volume and open interest provides crucial insights into the liquidity and appeal of Cisco Systems’s options at a particular strike price. The evolution of call and put volume and open interest in the past 30 days offers a vivid snapshot of the trades involving Cisco Systems within a strike price bracket of $47.0 to $55.0.
Spotlight on Major Options:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| CSCO | CALL | SWEEP | BULLISH | 10/20/23 | $55.00 | $109.4K | 7.2K | 905 |
| CSCO | PUT | TRADE | NEUTRAL | 09/15/23 | $55.00 | $106.1K | 296 | 428 |
| CSCO | PUT | SWEEP | BEARISH | 06/21/24 | $55.00 | $104.8K | 3.2K | 464 |
| CSCO | CALL | SWEEP | BEARISH | 09/15/23 | $55.00 | $86.2K | 19.9K | 1.3K |
| CSCO | CALL | SWEEP | BULLISH | 07/28/23 | $51.00 | $85.3K | 3.6K | 405 |
The Current State of Affairs for Cisco Systems
Cisco Systems, enjoying a volume of 49,671,585, has seen its price appreciate by 0.5% to $52.63. RSI indicators suggest that the stock might be nearing an overbought state. The next earnings report is slated to be unveiled in 26 days.
Expert Opinions on Cisco Systems
- JP Morgan takes a bullish stance, upgrading Cisco to Overweight and setting a price target of $62
- B of A Securities and Citigroup take a neutral stance, downgrading Cisco and setting price targets of $56 and $54 respectively
- Exane BNP Paribas bears a bearish sentiment, downgrading Cisco to Underperform with a price target of $45
Although options trading carries more risks compared to simple stock trading, it offers higher potential profits. Seasoned options traders navigate these waters by constant learning, strategic trading, relying on multiple indicators, and keeping a keen eye on the market.