Cisco Bulls Outweigh Bears; Adobe Still A Hot Call

Cisco

By Jon "DRJ" Najarian, cofounder of OptionMonster.

By Jon "DRJ" Najarian

The bulls outweigh the bears on options trading for Cisco Systems (CSCO Quote) a day before the networking company is to unveil new consumer products and initiatives at the Consumer Electronics Show in Las Vegas.

This morning CSCO saw 44,000 calls trade against 28,700 puts, for a 0.6 put-call ratio, according to optionMONSTER's tracking systems. This call activity is already 140% of the average daily turnover of calls for the last 30 days. Cisco is up some 3.5% in early afternoon trading to $17.70.

Tomorrow's announcement at CES, which has become the leading industry event for mainstream electronics and technologies, is scheduled to begin after the market closes. Cisco, which dominates the market for corporate networking systems, for years has sought to expand into the home and other consumer areas.

Adobe

By Pete Najarian, cofounder of OptionMonster.

Adobe Systems (ADBE Quote)is up nearly 5% today and continues to see call activity.

The call buying began around a week ago, when we reported volume approaching four times the daily average for the maker of Photoshop, Flash, and other popular software. Today trading continued to surge at the February 22.5 calls, which now go for more than $2.40 as opposed to the $1 price last Tuesday.

Since then, ADBE shares have risen from $21.05 to $24.23 in midday trading today. The company announced this morning that it is partnering with Broadcom to bring Flash technology to digital TV set-top boxes, allowing the development of computer-like graphics.

EEM

By Chris McKhann, analyst at OptionMonster.