By Jud Pyle, CFA, chief investment strategist for the Options News NetworkThere was definitely an abundant supply of Cisco Systems ( CSCO) call options this morning for investors interested in buying the Jan 27.5 calls -- at least one call seller has been boosting volume today. Looking at Jan 2010 27.5 call options, we see that more than 8,000 contracts have traded so far today. But the bulk of this volume crossed the tape during the first 15 minutes of trading, when more than 5,500 27.5 call-option contracts traded, according to ONN.tv's Sidewinder report. The call prices remained unchanged from yesterday while the stock climbed 62 cents, or 3.22%, to $19.87 in mid-morning trading.
Such call-selling activity does not mean investors should run right out and sell their shares. But it demonstrates how some investors are selling call options to protect some of the gains they've collected in the last couple months. Cisco hasn't seen a 52-week low since March 9, but this longer-term call-selling could be a bet by a long stock holder that even though the stock has been trending higher, a big rally is unlikely for the rest of the year. Jud Pyle is the chief investment strategist for Options News Network (www.ONN.tv) and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Mr. Pyle writes regularly about options investing for TheStreet.com.