Market News

October 14, 2016  Fri 12:50 PM CT

Traders are positioning for a possible drop in Juniper Networks.

optionMONSTER's monitoring program shows that 3,000 October 23.50 puts were purchased for $0.63 to $0.69. Volume surpassed open interest of 752 contracts, an indication new money was put to work.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

JNPR is off 1.51 percent to $22.86 in afternoon trading and is down 5 percent in the last week. The network-equipment maker is scheduled to report earnings after the close on Oct. 25, two session after today's puts expire.

Overall option volume is about average in JNPR today, with puts outpacing calls by narrow margin.

News Archives

Related Stories


Call buyers piling into Juniper Networks

September 29, 2016

The network-technology company has rallied 12 percent in the last three months, and traders see more upside by early next year.



The fastest money in the market VIEW FULL REPORT

Education & Strategy

Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

More education articles »