ANET recently broke above key long-term resistance
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Arista Networks Inc (NYSE:ANET) stock’s weekly breakout recently cleared long-term resistance at the $108 level. The equity has been in a seasonally strong period dating back to March. With this technical setup in place, we are initiating a new long position on ANET.
Short-term options traders lean bearish toward the shares, per their Schaeffer's put/call open interest ratio (SOIR) of 1.27 that stands higher than 71% of readings from the past 12 months. Should some of this pessimism start to unwind, it could keep tailwinds blowing for the equity.
It’s also worth noting options are affordable, per Arista Network stock’s Schaeffer’s Volatility Index (SVI) of 40%, which ranks in the relatively low 23rd percentile of its annual range. Our recommended March 110 call has a leverage ratio of 5.7 and will double on an 18.8% rise in the underlying security.