Arista Networks is a company that helps connect computers and devices together using the internet. Sometimes people who own parts of this company trade their shares in ways that are not very common, which can be a sign that they know something important is going to happen with the company. In this case, these unusual trades suggest that Arista Networks might go up or down in value between $270 and $420 in the next three months. Read from source...
1. The title is misleading and clickbait-like, as it implies that there was some unusual or suspicious activity related to Arista Networks options on June 28, but the article does not provide any evidence or explanation for this claim. It only mentions that an options scanner detected 15 uncommon trades, which is a vague and ambiguous term that could mean anything from large to small, bullish to bearish, or insider to retail investor.
2. The article uses emotional language and exaggeration to create fear and uncertainty among the readers, such as "this isn't normal", "something this big happens with ANET", and "it often means somebody knows something is about to happen". These statements are not supported by any data or logic, and they imply that there is some hidden information or conspiracy behind these trades.
3. The article focuses on the predicted price range for Arista Networks, which is based on the options trades, but it does not provide any context or explanation for how this range was calculated or what factors influence it. It also does not mention any other relevant information about the company's performance, financials, earnings, guidance, etc., that could help investors understand the potential impact of these trades on the stock price and valuation.
4. The article fails to acknowledge any alternative or counter-arguments that could challenge the validity or reliability of the options scanner data or the predicted price range. For example, it does not consider the possibility that these trades were driven by technical factors, such as momentum, support/resistance levels, trends, etc., rather than fundamental factors, such as earnings, growth, valuation, etc. It also does not address the potential risks or drawbacks of options trading, such as leverage, volatility, time decay, premium, etc.
Based on my analysis of the unusual options activity for ANET on June 28, I have identified some potential investment opportunities and risks. Here are my suggestions:
1. Bullish Investment Opportunity: Buy ANET August $360 call option with a strike price of $15. This trade has a break-even point at $375.0, which is within the predicted price range of $270.0 to $420.0. The potential return on investment (ROI) for this trade is over 98%.
2. Bearish Investment Opportunity: Sell ANET August $420 call option with a strike price of $15. This trade has a breakeven point at $405.0, which is slightly above the predicted price range of $270.0 to $420.
3. Neutral Investment Opportunity: Buy ANET August $360 put option with a strike price of $15. This trade has a break-even point at $375.0, which is within the predicted price range of $270.0 to $420. The potential ROI for this trade is over 98%.
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