Stocks with interesting option activity:
Cisco Systems Inc. (CSCO ) - Cisco High
After the close on November 9, CSCO reported earnings that came in a penny better than estimates. The stock has marked new record intraday highs every day since the earnings announcement. Nevertheless, put players appear to be expecting a pullback. Yesterday, open interest on the November 80 put rose from 3,100 to 8,500 contracts, and the December 80 put increased from 1,500 to 2,600 contracts. The call side is active today, with over 5,000 contracts trading on the November 80 strike and more than 3,250 trading on the December 80 strike.
AMCC (AMCC ) - Apply Call Pressure
AMCC designs, develops, manufactures, and markets high-performance, high-bandwidth silicon solutions for communications infrastructures. Since October 1998, the stock has gained a whopping 1,380 percent, thanks to the flawless support of its 10-week moving average. Lately, the shares have accelerated away from this trendline by as much as 32 percent. Despite the equity's strength, options players have not been overly bullish, as total calls outnumber total puts by only 19 percent. Yesterday, 2,998 December 80 puts were opened, many as spreads linked to the February 115 and 120 calls. Today's option activity seems tame by comparison.
Lucent Technologies Inc. (LU ) - The LU View
LU closed above the 75 level for the second time in a row yesterday. The stock's recent 33- percent run-up has placed the shares at a level not seen since mid-July. LU's impressive advance has been supported by its five-day moving average, which currently sits near 72-1/2. Despite this renewed strength, options players continue to add puts. Open interest on the November 75 put went from 1,500 to 2,600 contracts yesterday, while the December 75 put went from 600 to 1,100 contracts. Calls have also been growing amid the equity's rally. Open interest on the November 80 call jumped from 3,700 to nearly 6,000 contracts, while the December 80 call increased from 2,100 to 3,400. The November 75 call is the most popular LU option today, with 1,780 contracts crossing the tape so far. |
