Significant Options Trading on Friday: RIOT, CPF, ANET
Central Pacific Financial Corp Options Activity: CPF options are experiencing significant trading volume, with 677 contracts traded today, equating to about 67,700 underlying shares, which is 48.9% of its average daily volume.
High Volume Call Option for CPF: The $30 strike call option expiring on December 19, 2025, has seen particularly high activity, with 337 contracts traded, representing approximately 33,700 underlying shares.
Arista Networks Inc Options Activity: ANET options are also active, with 40,016 contracts traded today, representing around 4.0 million underlying shares, or 48.8% of its average daily volume.
High Volume Put Option for ANET: The $105 strike put option expiring on January 30, 2026, has notable trading volume, with 10,480 contracts traded, representing about 1.0 million underlying shares.
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- AI Investment Focus: Jim Cramer highlighted Dell Technologies during his show, emphasizing its crucial role in AI infrastructure as a provider of servers and storage systems, showcasing its strategic position in the rapidly evolving AI market.
- Market Opportunities: Cramer noted that while Dell has potential in the AI sector, he believes other AI stocks may offer greater upside potential and lower downside risk, reflecting a diversified view on investment opportunities in the market.
- Industry Competition: Dell competes with companies like Vertiv, Corning, and Arista in the AI infrastructure space, indicating its collaborative relationships in networking equipment and cooling solutions, which enhance its market competitiveness.
- Investment Advice: Cramer expressed regret over missing out on Dell stock, hinting at its potential for future growth and encouraging investors to monitor the company's performance in the AI sector, despite the presence of other more attractive investment options.
- Significant Stock Drop: Arista Networks' stock fell 13.6% today, despite beating earnings estimates, as the failure to raise future guidance is seen as a critical blow in a tech-driven market, undermining investor confidence.
- Demand-Supply Imbalance: While market demand remains strong, the company faces supply constraints expected to last one to two years, creating a high-quality problem that still pressures stock prices.
- Leadership Confidence: Under CEO Jayshree Ullal's leadership, Arista Networks has consistently performed well, and analysts are optimistic about her ability to resolve supply issues, which could help restore market confidence.
- Investor Strategy Shift: Despite short-term challenges, Jim Cramer suggests investors consider buying during the stock's downturn, believing that the current price reflects market fears that may prove unfounded, indicating potential for a rebound.
- Significant Revenue Growth: Arista Networks reported a total revenue of $2.709 billion for Q1 of fiscal 2026, reflecting a robust 35.1% year-over-year increase, which underscores the company's strong performance amid dynamic macroeconomic and supply chain conditions, further solidifying its market position in AI.
- Enhanced Profitability: The company reported a non-GAAP EPS of $0.87, indicating that Arista is maintaining a rigorous focus on the bottom line while achieving high-quality growth, reflecting effective cost control and operational efficiency.
- Optimistic Outlook: CFO Chantelle Breithaupt raised the fiscal 2026 revenue growth outlook to 27.7%, projecting total revenue of approximately $11.5 billion, while increasing the AI fabrics target from $3.25 billion to $3.5 billion, demonstrating confidence in the demand for AI solutions.
- Positive Analyst Ratings: Piper Sandler raised Arista's price target to $181, maintaining an Overweight rating, emphasizing its strong customer base in inference-based use cases, including hyperscalers and large enterprises, indicating significant growth potential ahead.
- Strong Performance with Caution: Arista Networks reported a 25% year-over-year revenue increase to $2.71 billion in Q1, surpassing the $2.6 billion forecast, with adjusted EPS rising 32% to $0.87; however, management warned that supply constraints could impact future revenue growth and gross margins.
- Margin Compression: The gross margin contracted by 180 basis points to 61.9% in Q1, while the adjusted gross margin fell 170 basis points to 62.4%, primarily due to rising costs from shortages of data center components, a situation expected to persist into 2027.
- Customer Concentration Risk: With Microsoft accounting for 26% and Meta for 16% of last year's revenue, Arista's heavy reliance on large customers makes it difficult to pass on cost pressures, leading management to anticipate continued gross margin pressure.
- Upgraded Full-Year Revenue Outlook: Despite challenges, Arista raised its 2023 revenue growth forecast from 25% to 27.7%, now expecting $11.5 billion, driven by AI fabric sales projected to reach $3.5 billion, indicating the company's growth potential in the AI sector.
- Stock Performance: Arista Networks' shares surged 40.7% in April, reaching an all-time high, primarily driven by market recovery and positive investor sentiment towards its newly launched AI product line.
- Analyst Rating Upgrade: Rosenblatt analyst Mike Genovese upgraded Arista to a buy rating with a price target of $180, highlighting the company's close relationships with Microsoft and Meta as key factors for early technology adoption.
- Technological Innovation: The introduction of Arista's eXtra-dense Pluggable Optics (XPO) technology, which offers 8 times the bandwidth and reduces server requirements by 75%, addresses the needs of high-throughput AI data centers, showcasing its industry leadership.
- Financial Performance: Arista reported first-quarter revenue of $2.7 billion, a 35% year-over-year increase, with expectations for AI-related sales to double to $3.25 billion in the next year; despite a stock drop due to earnings not meeting expectations, the company demonstrates strong growth potential.
- Stock Performance: Arista Networks saw its stock surge 40.7% in April, reaching an all-time high, driven primarily by positive investor sentiment towards its newly launched AI hardware product line and aided by a broader market recovery.
- Analyst Rating Upgrade: Rosenblatt analyst upgraded Arista to a buy rating with a price target of $180, highlighting the company's close relationships with Microsoft and Meta, who are expected to be early adopters of the new technology.
- Strong Financial Results: Arista reported first-quarter revenue of $2.7 billion, a 35% year-over-year increase, with adjusted earnings per share of $0.87, and anticipates AI-related sales to more than double to $3.25 billion over the next year, indicating robust growth potential.
- Optimistic Market Outlook: Despite a pullback in stock price following strong earnings, analysts remain bullish, with 93% rating it a buy or strong buy, and an average price target of $187 implies a 32% upside, reflecting confidence in the company's future growth.











