Options traders were bullish on Cisco Systems yesterday, apparently in early speculation over the networking technology giant's earnings report next month.
According to 's proprietary tracking systems, trading was concentrated on the August 19 calls, where 24,780 contracts changed hands in a strong buying pattern at more than double the open interest. On an average day only 1,074 calls have traded at that strike in the last month.
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In other seemingly bullish options activity, puts were sold in large numbers at the July 18 and August 18 strikes in what may be an indication that traders are no longer be worried that the CSCO shares shares will fall in the next month or so.
The stock ended yesterday's regular session up 0.22 percent to $18.17 and inched up to $18.25 in after-hours trading. CSCO has rebounded from its 52-week low of $13.61 from March 9 but has encountered technical resistance around the $20 area twice since then.
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Yesterday morning the company announced a partnership with UnitedHealth Group on a major health care initiative designed to "expand physicians' reach into both rural and other underserved areas and to help mitigate disparities in health care delivery."
That program is scheduled to be unveiled before federal legislators in Washington on Wednesday. Cisco is expected to deliver its quarterly earnings results Aug. 4.
Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of .