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


Related Stories

JDSU

JDS Uniphase ready for breakout?

February 25, 2015

The network-technology testing company fell after its last earnings report at the end of January, but shares have since recovered those losses.

Invest Like a Monster - Las Vegas: March 13-14

Premium Services

Webinar Recording

Turbo Charge Your Trading Profits

Education & Strategy

The Strike-Based Greeks

The other Greeks (Gamma, Vega, and Theta) are calculated by using month and strike data, and not by individual option. These are called strike-based Greeks. Gamma, Theta, and Vega are all strike-based Greeks

View more education articles »