Cisco Stock Draws Heavy Bearish Options Bets as $1.9M in Puts Target $135 Strike

By TrendSpider Editor

Cisco Systems (CSCO) is flashing a bearish signal in the options market today, with six unusual contracts totaling $1,865,100 in premium concentrated almost entirely in in-the-money put positions. Shares are trading at $119.25, down 1.70% on the session, and the cluster of $135 strike puts expiring

Cisco Stock Draws Heavy Bearish Options Bets as $1.9M in Puts Target $135 Strike

Cisco Systems (CSCO) is flashing a bearish signal in the options market today, with six unusual contracts totaling $1,865,100 in premium concentrated almost entirely in in-the-money put positions. Shares are trading at $119.25, down 1.70% on the session, and the cluster of $135 strike puts expiring June 2027 suggests at least some institutional players are positioning for continued downside or hedging existing long exposure at a meaningful premium to current levels. With the stock sitting well above its 52-week low of $65.75 but still below its 52-week high of $130.37, the $135 strike represents a level the stock has not reclaimed, adding weight to the bearish read on this flow.

Key Drivers of the CSCO Stock Move

The forward setup for Cisco is complicated by the stock's position in its 52-week range. Shares have nearly doubled off the 52-week low of $65.75 but remain below the 52-week high of $130.37, leaving the stock in a zone where momentum could break either direction. The heavy clustering of put premium at $135 through June 2027 gives bearish traders more than eleven months of runway, implying this is not a short-term tactical trade but a longer-duration macro or fundamental thesis. Investors will want to watch upcoming earnings reports and any commentary around enterprise IT spending cycles and AI infrastructure demand, areas where Cisco has been actively repositioning its business, to gauge whether the options market's skepticism proves warranted.

CSCO Unusual Options Activity

All six flagged contracts today are put contracts, with zero calls in the unusual flow. Five are concentrated at a single strike and expiration, which is an unusually tight clustering that traders often associate with institutional block activity:

Total unusual premium flagged today: $1,865,100. All six contracts are puts. Call count: 0. The $135 strike alone accounts for $1,715,000 of the total premium, or approximately 92% of all unusual flow.

CSCO Seasonality

Mid-July historically marks the stretch leading into Cisco's fiscal fourth-quarter earnings, a period that can bring elevated volatility as investors position around results and forward guidance. Options players locking in longer-dated protection now through June 2027 may be looking to sidestep multiple earnings cycles with a single hedge.

CSCO Relative Performance

CSCO is down 1.70% today, trading at $119.25. The stock is positioned in the upper half of its 52-week range of $65.75 to $130.37, but the day's decline and the concentration of bearish options flow suggest near-term selling pressure may be building. Investors tracking large-cap technology peers should note that a move back toward the 52-week high would require a gain of roughly 9.3% from today's close, while the $75 put strike represents a decline of approximately 37% from current levels.

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