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September 17, 2013  Tue 3:47 AM CT

One investor is using a complex strategy in Ciena in betting that the telecom-equipment stock will hit multi-year highs by early 2014.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 1,375 January 30 calls for $0.95. Some 2,750 January 22 puts were sold at the same time for $1.22, and 2,750 January 18 puts were bought for $0.42.

The trader collected a credit of about $89,000 and now stands to profit from owning the calls if the shares keep rallying. The investor is also on the hook to buy the stock for $22 if its falls below that level, with a hedge in place at $18. (See our Education section for more on the strategy, which uses a put credit spread to finance long calls.)

CIEN rose 0.52 percent to $25.31 yesterday. The stock is up 61 percent so far this year, fueled by strong earnings reports, as large carriers boost capital spending. It last saw $30 in early 2008, so yesterday's investor is definitely looking for a big run.

The bullish three-way strategy accounted for roughly half the total option volume in CIEN during the session.
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