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Juniper faces range bound trade

Chris McKhann (chris.mckhann@optionmonster.com)

Juniper faces range bound trade Juniper Networks has been falling, and one investor doesn't expect a bounce anytime soon.

optionMONSTER systems show more than 30,000 JNPR options change hands, 5 times the daily average over the last month. A huge combination in May dominates the volume. A block of 15,000 contracts traded each of the May 17 puts and the May 20 calls. The puts changed hands for $0.46 and the calls for $0.58. Both were more than open interest and both appeared to have been sold on penny-wide spreads.

So this looks like a short strangle play. That means the trader is looking for range bound trade and relatively low volatility over the coming weeks. (See our Education Section .)

JNPR fell 0.37 percent to $ $18.60 in morning trading. It peaked above $22 into February and has been slipping for more than a month. It is on pace for the lowest close since early December. The action has driven the average implied volatility up to 38 percent, while the 20 day historical volatility is 31 percent.

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