OptionsHouse

Options Trading News

December 13, 2013  Fri 3:47 AM CT

CIEN: SEE CHART GET CHAIN FIND STRATEGIES
Ciena fell to a three-month low after missing earnings estimates yesterday, but one large trader sees an end to the bloodletting.

optionMONSTER systems detected the sale of 5,000 July 20 puts for the bid price of $2.17. Open interest in the strike was a mere 5 contracts before the trade appeared, so it clearly a new position.

The put seller is looking for CIEN to hold above $20 through expiration in mid-July, at which point the $2.17 credit would be kept as profit. But if the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

CIEN dropped 6.94 percent to $21.31 yesterday, its lowest close since the beginning of September. Shares of the networking-technology company had climbed to a 52-week high just shy of $28 in October.

More than 45,500 CIEN options traded yesterday, 9 times its daily average for the last month.
Share this article with your friends


OptionsHouse

Premium Services

Education & Strategy

The Problem with Trading Earnings

AP Options specializes in Swing Trading. Swing trading is the art of locating short term, quick, aggressive movements in a stock normally created by the technicals but, can be sometimes created by the fundamentals. These trades, at least in this service, last a couple of days to a week in the majority of cases.

View more education articles »