Arista Networks Soars on Strong Earnings; Options Offer Leveraged Upside

Arista Networks (ANET) reported strong Q2 earnings, beating estimates. Stock jumped 14% on Tuesday.

Call options provide leverage, allowing exposure to a stock while risking less capital. ANET June 2023 call requires $3,460 vs $20,000 for 100 shares.

Upside on call options is unlimited if stock price rises. Downside limited to premium paid if stock falls below strike price.

Can further limit risk by selling higher strike call to create a bull call spread. Reduces cost but also caps upside.

ANET has strong fundamentals, with top rankings for EPS, RS Rating and Composite Rating. Options risky so do due diligence.