OptionsHouse

Options Trading News

August 30, 2013  Fri 9:21 AM CT

CIEN: SEE CHART GET CHAIN FIND STRATEGIES

Someone is getting long Ciena today before the communications company reports earnings next Wednesday.

optionMONSTER's Heat Seeker monitoring program show that more than 10,000 CIEN options already trade, triple the daily average over the last month. One big investor purchased 2,500 of the January 2014 22 calls for the ask price of $1.76. At the same time they sold 2,500 of the 30 calls for $0.28 -- completing a vertical spread -- plus 2,500 of the 18 puts for $1.48 to further offset the cost of the trade.

The combination strategy cost nothing to implement, so the trader has no risk if CIEN remains between $18 and $22 at expiration. The maximum gain of $8 comes if it is at or above $30. The risk is that the stock falls below $18. (See our Education Section for more.)

CIEN fell 0.84 percent to $20.14. It was at a high of $23.63 in the first week of August. Shares gapped up through $18 in early June, and they haven't fallen back near that level since.

Share this article with your friends


Related Stories

CIEN

Ciena bulls active before earnings

August 31, 2015

The provider of networking equipment surged on better-than-expected profit and revenue in June. Its next earnings report is Thursday.

Invest Like a Monster - San Antonio: October 9-10

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Archived Webinar

Education & Strategy

Options Academy: On Options Strategies in General

Before we hop into the different option strategies, I have a few thoughts for you to remember concerning the strategies and our use of them.

View more education articles »