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Trade sees more gains in JDS Uniphase

David Russell (david.russell@optionmonster.com)

The bulls have been all over JDS Uniphase, and one investor apparently thinks that the stock may continue to rally.

On Nov. 20 , optionMONSTER's Heat Seeker tracking system detected unusual buying in the March 12 calls for $0.69. They were leveraged to upside in the maker of communications gear and proceeded to almost triple as shares pushed higher.

Today, with the March 12s trading for $1.55, the investor sold 6,000 contracts to take profits and purchased another 7,000 March 14 calls for $0.64. The net result is that he or she collected $482,000, more than the initial investment, and still has the potential to keep making money if the stock continues to climb. (See our Education section)

JDSU is unchanged at $12.80 in early afternoon trading, and is up 32 percent since the beginning of last month. The rebound followed a weak earnings report in late October and after the shares bounced around the same $9.60 level that had been support over much of the previous year.

Total option volume is almost 5 times greater than average in JDSU so far today, according to the Heat Seeker. Calls outnumber puts by 17 to 1.

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