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Put sellers bet Ciena will hold gains

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Ciena is pulling back after a big jump yesterday, but traders are betting that the network-equipment maker will hold current levels.

optionMONSTER's tracking systems detected the sale of 2,500 April 17 puts for an average price of $0.75 today. The volume was 4 times higher than the strike's open interest of 631 contracts before the session began, indicating new activity.

These short puts are looking for CIEN to stay above $17 through expiration in six weeks. If shares are above that strike price, traders will face the obligation to buy shares at that level. (See our Education section)

CIEN is down 1.31 percent to $17.30 after peaking at $17.78 this morning, just below its 52-week high of $18.39 from last August. The stock gapped up from below $15 yesterday after a strong first-quarter report. 

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