Dan Nathan Sees Unusal Options Activity In Cisco

Dan Nathan said on

that options volume in

was 1.5 times average daily options volume. The September 27 calls were the most active line and approximately 10,000 contracts were traded for around $0.20 per contract. It is interesting to say that this strike has largest open interest. In a month or so ago around 50,000 September 27 calls were traded, also at $0.20. The break-even on these is $27.20, which is a bit higher than Cisco's 52-week high at $26.48. Dan Nathan added that the holders of this position are betting that the stock will reach the price levels from the end of 2008. Cisco fell 0.32 percent on Tuesday and it closed at $25.15.