Put buyer targets Ciena despite rally

optionMONSTER

Ciena is rallying today, but one investor remains cautious.

optionMONSTER's Depth Charge tracking program detected heavy put buying in the maker of communications gear. Activity focused on the December 14s, with some 3,400 contracts purchased for $0.92 to $0.94. Volume was more than 15 times open interest at the strike.

The investor now has the right to sell CIEN for $14, no matter how low it goes. He or she may be using the puts to protect a long position in the shares or simply speculating that today's gains won't hold. (See our Education section for more on how options can be used to bet against a stock rather than selling it short.)

CIEN is up 9.33 percent to $14.41 in morning trading after AT&T announced plans to spend $14 billion expanding its network. Today's pop comes against a bearish trend since the summer, which could make some chart watchers think that the stock will head lower.

Overall option volume is quadruple the daily average in CIEN so far today, according to the Depth Charge.

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