Short-term put buying aimed at Cisco
Traders apparently believe that Cisco Systems may fall this week.
optionMONSTER's market scanner shows that more than 4,500 Weekly 30.50 puts expiring Friday were purchased for $0.20 to $0.37 today. This represents fresh buying, as volume was more than 5 times the open interest in the strike.
Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)
CSCO is down 1.97 percent to $30.43 in morning trading but is up 4 percent in the last three months. The networking-technology giant is scheduled to report earnings after the close on Nov. 16.
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