Schaeffer's Top Stock Picks for '25

The Dow Stock Bearish Options Traders Need to Target

CSCO tends to underperform in October

Sep 28, 2017 at 2:52 PM
facebook X logo linkedin


Earlier we took at the 25 worst stocks to own in October, a list that includes Dow component Cisco Systems, Inc. (NASDAQ:CSCO). We examine the tech stock below, taking a closer look at recent options activity on CSCO.

Cisco is Staring Up at Potential Options-Related Resistance

CSCO sports a year-to-date lead of 10.4%, last seen trading at $33.37. However, the shares were recently rejected near the site of their mid-May pre-bear gap highs, indicating a potential layer of resistance going forward. Plus, Cisco's October win rate over the past 10 years is just 30%, with an average monthly loss of 1.07%. 

Options traders, meanwhile, have shown bullish tendencies. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security has a 10-day call/put volume ratio of 2.38, good enough to rank in the 71st annual percentile. Cisco also has notable open interest of 22,713 contracts just overheard at the October 34 call, while the October 33 call is home to peak open interest of 47,115. 

Finally, it's worth nothing that it's seemingly a good time to target short-term options on Cisco Systems. This is according to its Schaeffer's Volatility Index (SVI) of 15%, which ranks below 78% of comparable readings during the past year. In other words, volatility expectations are rather muted at the moment for near-term contracts. 
 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?