Cloud Stock Pullback Presents Options Opportunity
By
Schaeffer's Digital Content Team
| October 23, 2026, 1:48 PM
Subscribers to Schaeffer's Weekend Trader options recommendation service received this ANET commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.
Shares of cloud hardware concern Arista Networks (ANET) have experienced a sharp pullback to their April/May highs. The drawdown is revisiting a July 31 peak that followed an AI-related selloff reportedly driven by a fund blowup. Rumors of another AI fund blowup have surfaced amid the past two days of volatile price action.
The pullback has brought ANET to its six-month moving average, adding another layer of potential support. In the options pits, the shares have moved into a substantial stack of put open interest, which remains intact following October expiration and could help fuel a rebound.
Broader options sentiment also suggests room for an unwinding of pessimism. ANET's gamma-weighted Schaeffer's put/call open interest ratio (SOIR) stands at 1.17, while its 50-day buy-to-open put/call volume ratio ranks in the 72nd percentile of its annual range.
Now looks like an attractive time to weigh in with options. ANET’s Schaeffer’s Volatility Index (SVI) of 57% ranks in the low 12th percentile of its annual range, suggesting options are relatively inexpensive at the moment.
Our recommended call option has a leverage ratio of 5.9 and will double in value with an 18.3% move in the underlying equity.
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