Trader bets on end to Ciena's slide
Chris McKhann | email@example.com
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.