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
OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market VIEW FULL REPORT

Education & Strategy

Election Sector Rotation

Sector rotation is the process where mutual funds, portfolio managers, and investors in general, shift their investments from one sector of the economy to another.

More education articles »