Focus: U.S. Stock Q1 2026 Earnings Reports Bullish sentiment is heating up ahead of Cisco's earnings report: What are options traders betting on? As earnings season approaches this week, the options market appears to have set its sights on another hot tech stock—the veteran networking equipment giant Cisco. After years of transformation, the company has gradually shifted towards software and cloud AI technologies. Its stock price has surged significantly ahead of its earnings report scheduled for Wednesday. Over the past month, Cisco's stock has climbed 15%, with substantial capital flowing into call options. As of midday Central Time on Friday, call option volume exceeded 75,000 contracts, while put option volume was only 16,000. The number of call options traded at or above the ask price was more than double those traded at the bid, indicating traders are actively chasing the upside and positioning for significant gains. Despite a weak broader market performance on Monday, Cisco's stock continued to move higher. Market trading was concentrated in at-the-money and near-the-money call options. Throughout Friday, as the stock price rose steadily, the prices of these options also climbed. The most actively traded contract was the May 15 expiration call with a $100 strike price. The contract generating the largest premium volume for the same expiration date was the $95 strike call. A key point of interest: Amid this fervent trading activity, Cisco's option implied volatility has spiked rapidly. On Friday, implied volatility hit 47, reaching a new high in over a year and now matching the level of the semiconductor sector index—a sector where stocks have recently experienced parabolic rallies. Rising stock prices coupled with increasing call option premiums have become a hallmark of trending, popular stocks. These stocks are heavily favored by retail traders willing to pay a premium to bet on rapid, short-term price surges. A recent prime example is the veteran chipmaker Intel: Less than a year ago, the market debated whether it was becoming marginalized in the industry. Since the influx of call option capital ahead of its earnings, its stock price has soared 88% to date.
Comments