Cisco to Report — but Juniper Sees Bullish Action
Many traders are awaiting results from Cisco Systems after the bell today (Wednesday), but it was rival Juniper Networks that turned heads yesterday in the option market.
OptionMonster's tracking systems detected the purchase of more than 6,500 February 42 calls on Juniper. The first few big chunks priced for $0.33, but then premiums rose to $0.34 and $0.36. Trading was also active in the March 44 contracts, which changed hands more than 4,000 times for $0.40 to $0.58.
Overall volume in the name was almost 25,000 contracts, more than double its daily average. Of that total fewer than 4,000 were puts, so a bullish tone definitely predominated. There was also bullish call buying in the name on Friday.
Juniper focuses on networking software and systems for data centers, consumers, and cloud-computing providers. The stock ended yesterday's session up 0.47 percent at $40.29, continuing to bounce after pulling back to around $34.50 last month. (See ticker, above, for today's real-time moves.)
Cisco, it should be noted, didn't have as positive a session because most of its calls were sold. The stock has rallied back after a weak earnings report in November, but now it's facing overhead resistance at its 200-day moving average.
Pete Najarian has no positions in JNPR or CSCO.
Other Storage and Network Players:
Options Trading School: