Market News

October 12, 2016  Wed 9:09 AM CT

Traders apparently believe that Cisco Systems may fall this week.

optionMONSTER's market scanner shows that more than 4,500 Weekly 30.50 puts expiring Friday were purchased for $0.20 to $0.37 today. This represents fresh buying, as volume was more than 5 times the open interest in the strike.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

CSCO is down 1.97 percent to $30.43 in morning trading but is up 4 percent in the last three months. The networking-technology giant is scheduled to report earnings after the close on Nov. 16.

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