ANET — Aug 160/130 put credit spread

Arista reports Q2 on August 3 after raising FY26 revenue-growth guidance to 27.7% near $11.5B and lifting its AI-fabrics target to $3.5B from $3.25B. Back-end Ethernet for OpenAI's 4.5GW and Meta's 3.4GW of tracked capacity is the demand the print has to confirm, and the chain prices a 22% move by August expiry, so the 160/130 put credit spread harvests that elevated premium with a bullish bias and a 150.42 breakeven.

Structure

  • short put 160 2026-08-21
  • long put 130 2026-08-21

Signals

  • FY26 rev-growth guide: raised to 27.7% (~$11.5B) (web_search)
  • AI-fabrics target: raised to $3.5B (from $3.25B) (web_search)
  • Hyperscaler MW exposure: OpenAI 4.5GW, Meta 3.4GW, MSFT 1GW (DB)
  • Aug implied move: 22% by Aug 21 expiry (DB)

What invalidates this thesis

Any hyperscaler-digestion commentary from Meta or Microsoft, or a soft Q3 guide, drops ANET toward the 160 short strike; the spread loses below the 150.42 breakeven.