The bulls had their horns out for JDS-Uniphase yesterday, looking for a rally.
Buyers snapped up the October 13 calls, paying $0.36 to $0.39. More than 9,300 traded versus previous open interest of just 153 contracts, according to our data systems.
Those calls lock in the price investors must pay to buy shares in the maker of communications equipment. If it rallies, the calls can generate some nice leverage. But they will also expire worthless if it doesn't move.
JDSU fell 0.85 percent to $11.62 yesterday. The company reported earnings recently, beating on both the top and bottom lines despite challenging economic conditions. The valuation of forward earnings is fair and management has been navigating in a tough environment.
CEO Tom Waechter is also scheduled to make a presentation at the 2012 Citi Global Technology Conference on Wednesday. Sept. 5.
Calls outpaced puts in the stock by about 12,000 to 1,900 yesterday. Total volume was 4 times greater than average.
DISCLOSURE: I OWN JDSU CALLS
(A version of this post appeared on InsideOptions Pro yesterday.)
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