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Strategies & Market Trends : Tech Stock Options

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To: jluker who wrote (27638)11/1/1997 7:21:00 PM
From: Peter Donohue  Read Replies (4) of 58727
 
To All

Could anyone comment if this is bullish activity for CSCO. What side (Buy or Sell) of the options is the smart money??
Tues is earnings.
CSCO closed friday 82 1/16 up 2

CBOE Most active call, put option series
calls
#4 cisco nov85 vol=2875 last = 2 1/2 up 15/16
puts
#1 cisco nov70 vol=3895 last = 7/8 dn 1/8


I am interpreting all the put activity as protective puts in case they disappoint. If the market knew they were going to disappoint they would buy puts with a higher strike to maximize gains.

The calls also, if they were selling calls because they knew the price was going down they would sell with a lower strike price.

I would appreciate any insight from the experts on this thread.

thanks in advance

pd
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