Who said out with the old and in with the new always holds true?
After Microsoft beat its earnings expectations 2 nights ago and boasted it’s advances in the cloud space, both Intel and Cisco saw aggressive price action to the upside. In fact, most of 2016 we’ve lacked a prominent leading sector despite remaining fairly close to all-time highs on the S&P. This week it’s clear that the Tech sector has claimed that leading position.
Earnings for Cisco are scheduled for August 17th, but sweepers came in with a heavy hand yesterday and put out some serious call bets expecting this rotation to continue into 2017. Intel earnings last night threw a little damper on the fire so far but these directional bets are too large to not take notice of.
Total volume across all options contracts traded in CSCO was absurd, but these were the more aggressive orders we found.
Cisco is trading at a multi-year high and looks poised to continue.
As you can see there’s a lot of call sweep action going on for August as well, which is not surprising as earnings will hit 2 days before that expiration. This is a good longer term swing candidate as long as the indexes continue their slow march into higher territory.
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