OptionsHouse

Options Trading News

November 2, 2012  Fri 11:20 AM CT

JDSU: SEE CHART GET CHAIN FIND STRATEGIES
JDS Uniphase is drawing bearish option activity as the stock slips lower.

A trader bought more than 3,200 November 9 puts for the ask price of $0.05 across exchanges in the same second, according to optionMONSTER's Depth Charge system. Open interest in the strike was just 784 contracts at the start of the day, so this is a new position.

The puts were not traded against any shares of the stock that we saw today. The delta is just 0.09, suggesting just a 9 percent probability that those puts will expire in the money.

This could be an cheap bearish play, given the $0.05 option price, or it could be protective hedging on a long position. (See our Education section)

JDSU is down 1.91 percent to $10.25 in early afternoon trading, giving up some of its gains from the previous session. Shares of the telecom-testing equipment maker closed at $9.70 on Wednesday after its earnings report, its lowest since Aug. 2, but then rallied strongly yesterday.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »