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After yesterday's closing bell, Cabletron Systems (CS – 31-1/4) reported second-quarter earnings of a penny per share, which surpassed Street expectations calling for a loss of a penny per share. In after-hours trading after the company posted its positive earnings surprise, the stock shot up by eight percent. This follows the shares' one-percent gain on Monday that lifted them above their 10-day moving average for the first time since September 7. CS is also trading back above its 10-week trendline.
Information from Schaeffer's Daily Sentiment indicates that investors are showing increased pessimism toward CS. On August 29, Schaeffer's put/call open interest ratio (SOIR) on the issue stood at 0.22, which is lower than its current reading of 0.34. During this time frame, total call open interest for options expiring within the next three months has decreased by 4,881 contracts, while put open interest has risen by 1,545 contracts.