Puts hit Cisco before quarterly report
Short-term options in Cisco Systems are bearish heading into its earnings report tomorrow afternoon.
optionMONSTER's Depth Charge monitoring system detected the purchase of more than 15,800 February 22 puts for $0.44 to $0.52 today. Volume surpassed open interest of 3,256 contracts, an indication that new money was put to work.
Long puts lock in the price where a stock can be sold, so they make money to the downside. Investors use them to hedge long positions or to speculate on a drop. (See our Coaching section)
CSCO is down 1.44 percent to $22.60 in afternoon trading and has fallen down 19 percent in the last three months. The network-technology giant reported bearish results on Nov. 12 and is scheduled to announce its next earnings numbers for after the market closes tomorrow.
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