Bulls bet on gains in Ciena this week
Short-term traders are looking for a quick pop in Ciena.
OptionMonster's monitoring system shows that more than 3,500 Weekly 20 calls expiring this Friday were purchased for $0.17 to $0.28 yesterday. Volume was more than 6 times the open interest in the strike, which indicates that new money was put to work.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
CIEN fell 0.8 percent to $19.89 yesterday and is down 10 percent in the last month. The networking-technology company is expected the report earnings in pre-market hours on Dec. 8.
Overall option volume was about average in CIEN yesterday. Calls outnumbered puts by a bullish 11-to-1 ratio.
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