Options Trading News

December 12, 2012  Wed 11:28 AM CT

The bulls have been all over JDS Uniphase, and one investor apparently thinks that the stock may continue to rally.

On Nov. 20, optionMONSTER's Heat Seeker tracking system detected unusual buying in the March 12 calls for $0.69. They were leveraged to upside in the maker of communications gear and proceeded to almost triple as shares pushed higher.

Today, with the March 12s trading for $1.55, the investor sold 6,000 contracts to take profits and purchased another 7,000 March 14 calls for $0.64. The net result is that he or she collected $482,000, more than the initial investment, and still has the potential to keep making money if the stock continues to climb. (See our Education section)

JDSU is unchanged at $12.80 in early afternoon trading, and is up 32 percent since the beginning of last month. The rebound followed a weak earnings report in late October and after the shares bounced around the same $9.60 level that had been support over much of the previous year.

Total option volume is almost 5 times greater than average in JDSU so far today, according to the Heat Seeker. Calls outnumber puts by 17 to 1.
Share this article with your friends

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

Premium Services

Archived Webinar

Education & Strategy

Options Academy: More on the Covered Call Strategy

Last week, we talked about the Covered Call and the misconceptions that surround it. We spoke about how an investor must realize that the Covered Call is actually a premium collection strategy and not so much a directional one. If an investor can grasp this idea, the investor stands to do a heck of a lot better in the strategy than they currently do.

View more education articles »