Intel Climbs 15% on Apple Chip Deal as Trader Warns on Upcoming Cisco Earnings

"Implied volatility in Cisco is the highest in more than a year. Paying up for these calls ahead of earnings is basically the options equivalent of accelerating into the turn." Call volume was running more than four times the put volume, while one of the biggest trades highlighted on air was a roughly $200,000 purchase of 95-strike calls betting on another move higher after earnings. Cisco reports earnings after the market's close on Wednesday, May 13."

"Cisco posted Q2 FY2026 revenue of $15.35 billion, with networking revenue rising 21% year over year. AI infrastructure orders from hyperscalers also reached $2.1 billion, reinforcing the company's growing role in AI networking demand. But the discussion on CNBC focused less on the business itself and more on the expectations embedded in the stock."

"One longtime Cisco shareholder called into the show and admitted the rally was "making me a little queasy, not a lot, but a little," while adding that he planned to hold through earnings in hopes of another breakout move. Investors increasingly agree that Cisco is benefiting from AI spending, but the question is whether the stock has already priced in too much good news."

"Midway through the segment, attention shifted abruptly as Intel jumped more than 15% intraday on reports of a preliminary manufacturing agreement with Apple."

Cisco’s earnings setup drew attention for unusually high implied volatility and strong call demand relative to puts. Call volume ran more than four times put volume, and a notable trade involved buying 95-strike calls for about $200,000, signaling expectations for another post-earnings move higher. Cisco also showed supportive fundamentals, including Q2 FY2026 revenue of $15.35 billion and 21% year-over-year growth in networking revenue. AI infrastructure orders from hyperscalers reached $2.1 billion, reinforcing demand for AI networking. Intel’s story shifted sharply when Intel jumped more than 15% intraday on reports of a preliminary chip manufacturing agreement with Apple.

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