Shares of Cisco have rallied 8 percent in the past three months, but despite the move, some sophisticated traders are betting the rally will be short-lived.
On Monday, when options volume was 1.5 times its daily average, a trader closed out an existing bullish position in Cisco. The move comes as the tech company is about to undergo its first CEO change in more than 20 years. John Chambers announced on May 4 that he's stepping down from the top position and will be succeeded by longtime Cisco executive Chuck Robbins at the end of July.
A changing of the guard has in the recent past proven to be quite beneficial for shares in other companies. Microsoft stock is up 26 percent since Satya Nadella became CEO last year and Intel has gained 32 percent in the two years Brian Krzanich has been in charge.