Dow stock Cisco could drop 5% on earnings, traders say

  • 📰 CNBC
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 72%

Italia Notizia Notizia

Italia Ultime Notizie,Italia Notizie

Options traders think there could be rain in the forecast as this cloud stock gears up to report earnings after the bell on Wednesday.

heads into earnings in good shape, up more than 20% on the year. But as trade tensions heat up and economic data out of the U.S. and China points to a slowing global economy, options traders are growing increasingly worried that the company could get caught in the crossfire.

"The options market is implying a move of about 5% for Cisco after earnings. That's about in line with the 4.5% that it has averaged over the last eight quarters," said "Options Action" trader Michael Khouw on "Fast Money" Tuesday evening. "And although call volume did outpace put volume today on above-average volume, the bearish bets actually outpaced bullish ones.

With call sellers and put buyers leading the way in Tuesday's options trading in Cisco ahead of earnings, it looks like the trading consensus is betting that the cloud stock's earnings report will take a sizable chunk out of that 20% year-to-date gain. One trader thinks we'll see a pullback of nearly 5% that will last through the end of this week.

"The trade I was looking at was a purchase of the May 51-puts. That was the largest one, and included a block of 785 of those that traded for $0.71, so the buyer is obviously making a bet that the post-earnings move is going to be to the downside," explained Khouw.

 

Grazie per il tuo commento. Il tuo commento verrà pubblicato dopo essere stato esaminato.

I was right! It’s up 5%! cisco $CSCO

Why so pessimistic

Abbiamo riassunto questa notizia in modo che tu possa leggerla velocemente. Se sei interessato alla notizia puoi leggere il testo completo qui. Leggi di più:

 /  🏆 12. in İT

Italia Ultime Notizie, Italia Notizie

Similar News:Puoi anche leggere notizie simili a questa che abbiamo raccolto da altre fonti di notizie.

Dow plunges more than 700 points intraday Monday as trade-related stock-market losses gather steamThe stock market on Monday touched an intraday low, with the Dow sinking over 700 points amid escalating U.S.-China trade aggressions that have roiled... Thanks, realDonaldTrump! Dow hasn’t heard about the beautiful letter from President Shi which just arrived... Good.
Fonte: MarketWatch - 🏆 3. / 97 Leggi di più »

Disney's stock rallies to pace Dow gainers ahead of earnings reportShares of Walt Disney Co. rallied 1.6% in afternoon trade Wednesday, enough to pace the Dow Jones Industrial Average's gainers, ahead of the media and...
Fonte: MarketWatch - 🏆 3. / 97 Leggi di più »