Cisco Systems, Inc. (CSCO) Draws Mixed Trading Sentiment as Options Activity Remains Balanced

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TheFly reported on December 22 that shares of CSCO declined 26 cents to $78.16, reflecting mixed sentiment in the options market. Options volume was roughly in line with the average, with 51,000 contracts traded and calls outpacing puts, resulting in a put/call ratio of 0.77, above the typical level of 0.64.

Implied volatility (IV30) fell 1.28 points to 18.8, placing it in the bottom quartile of the past year and indicating an expected daily move of $0.93. Meanwhile, the flattened put-call skew suggested a modestly bullish tone, pointing to cautious optimism among options traders despite the slight drop in shares.

Separately, on December 17, Cisco Systems, Inc. (NASDAQ:CSCO) received a boost when Morgan Stanley analyst Meta Marshall maintained an Overweight rating and raised the price target from $82 to $91. In the research note, Marshall highlighted CSCO’s strong performance in AI-related growth drivers, noting that the company had surpassed $1 billion in AI-related orders, reaching $1.3 billion from hyperscale customers. This momentum suggests that AI-driven revenue could contribute around 5% of CSCO’s total business by fiscal year 2026, up from approximately 2% currently.

Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells a broad range of technologies across networking, security, collaboration, and applications. The company is currently leveraging its acquisition of Splunk to enhance its recurring software revenue and observability capabilities.

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