Cavium Networks (CAVM) Far from Caving

by Houghton and Atkeson   10/20/08
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Cavium Networks (CAVM) makes chips, security and network services processors for the networking world. Cisco (CSCO) is its largest customer, representing roughly 30% of revenues.

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The company reports earnings today after the close; options volume is running three times usual trading.

Market particpants have traded 4,810 calls and 298 puts. The calls are in the CAVM Nov 12.50 (QXAKV), March 12.50 (QXACV) and March 15 (QXACC) lines -- with the stock around $12.50.

Today's trading ahead of earnings isn't too uncommon, especially with 30% short interest, but since this is the second time in less than a week, traders might be getting positioned for a decent move.


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