Bullish Speculators Blaze Trail to Arista Networks Inc (ANET)

Arista Networks Inc was named a top pick by TV personality Jim Cramer

by

Published on Dec 12, 2014 at 10:35 AM
Updated on Apr 20, 2015 at 5:09 PM

Arista Networks Inc (NYSE:ANET) is down 0.3% this morning at $67.70, as Goldman Sachs' "neutral" initiation overshadows news that market pundit Jim Cramer has named the stock a top pick due to the company's "incredible growth." Yesterday, however, the shares gained 4.2%, attracting a rush of option bulls. Specifically, calls crossed at an 88% mark-up to the daily norm, and the equity's 30-day at-the-money implied volatility popped 3.9% to 55.4%, signaling elevated demand for short-term contracts.

Most active by a mile was the December 70 call, where nearly 1,200 contracts changed hands -- more than four times the next most active strike. Based a handful of factors, it appears at least some of these bets were freshly purchased, as traders wager on ANET to topple the round-number $70 mark by next Friday's close, when front-month options expire.

This bullish options trading slant is a little unusual for short-term ANET speculators. The equity's Schaeffer's put/call open interest ratio (SOIR) of 1.75 indicates put open interest nearly doubles call open interest, among options expiring in the next three months.

On the other hand, the brokerage crowd largely shares Cramer's opinion, over and against that of Goldman Sachs. Two-thirds of covering analysts rate Arista Networks Inc (NYSE:ANET) a "buy" or better, while the stock's consensus 12-month price target of $89.58 represents a 32.3% premium to current trading levels.


A Schaeffer's exclusive!

The Expert's Guide

Access your FREE trading earning announcements before it's too late!


 
 

Partnercenter


NEW! Explore Schaeffer’s Partners' deals and get connected to top online brokerages with deals tailored exclusively for our readers.  Get answers to your questions regarding transfer fees, commission rates, programs and available discounts related to online trading services.

MORE | MARKETstories


The Nevada Discovery That Could Jeopardize Chinese Dominance
Click to continue to advertiser's site.
Stocks Surge During Holiday-Shortened Week
Stocks chugged higher as the government responded to the coronavirus crisis with more funding
Bank Stocks Ease Investors Back Into Earnings Season
Bank stocks will kick off earnings season next week
The Top Lithium Play of 2020
Click to continue to advertiser's site.