Posts Tagged ‘CIEN’

Upside Call Buyers Enjoy Gains As Shares In Ciena Corp. Rise

Options brief will resume April 12, 2013.

Today’s tickers: CIEN, TITN & KKR

CIEN - Ciena Corp. – Shares in networking products and services provider, Ciena Corp., jumped 8.0% on Wednesday morning to and intraday high of $16.81, rising in sympathy with ADTRAN after that company reported better-than-expected first-quarter earnings and revenue after the closing bell on Tuesday. Some options traders are benefitting handsomely from the pop in Ciena’s shares today, having purchased upside calls on the stock yesterday. The largest increase in call open interest on CIEN since the prior session was in the April $16 strike calls. Time and sales data indicates some 5,000 of the $16 calls were purchased yesterday for an average premium of $0.21 apiece. The sharp rally in the price of the underlying today has more than tripled the value of the $16 calls overnight, with the contracts currently changing hands at $0.72 each as of midday in New York. Meanwhile, traders initiating bullish bets on Ciena Corp. today looked to the April $18 strike, buying up around 3,000 call options for an average premium of $0.09 per contract. Buyers of the $18 calls stand ready to profit at expiration should shares in the name rally another 8.0% to top the average breakeven point at $18.09 by expiration next week. Bulls also snapped up more than 1,200 calls at the May $18 strike this morning at an average premium of $0.35 each.

TITN - Titan Machinery, Inc. – Bearish options purchased on Titan Machinery yesterday ahead of the backhoe manufacturer’s fourth-quarter earnings report are generating sizable overnight paper profits for some traders today, with shares in the name plunging to the lowest level since November of 2012. TITN shares are currently down 16% on the session at $21.95 as of 12:15 p.m. ET. It looks traders picked up around 1,600 puts at the April $25 strike on Tuesday, the nearest to-the-money strike price available with shares in Titan Machinery closing the session at around $26.14. Put buyers paid $0.90 in premium per contract…
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Large Bearish Play In Exxon Mobil Options

 

Today’s tickers: XOM, CIEN & ZAGG

XOM - Exxon Mobil Corp. – Shares in Exxon Mobil are roughly flat on the session, trading 0.10% higher on the day $90.75 as of 10:55 a.m. ET ahead of the company’s fourth-quarter earnings report tomorrow before the open. A large put spread initiated on XOM in the early going today indicates one big options market participant is positioning for the price of the underlying to potentially pullback sharply during the next six months. The trader appears to have purchased a 30,000-lot July $77.5/$87.5 put spread for a net premium of $1.89 apiece. The spread makes money if shares in XOM decline 5.7% from the current price of $90.75 to breach the effective breakeven point on the downside at $85.61. Maximum potential profits of $8.11 per contract are available on the spread should shares in Exxon plunge nearly 15% to $77.50 by July expiration. Interestingly, a similar protective play was established on ConocoPhillips yesterday prior to that company’s earnings release after the close on Wednesday. Shares in Conoco are down roughly 5.0% today at $58.08 after the company’s projection for total production in 2013 was lower than 2012 production. Wednesday’s large COP trade, the purchase of a roughly 50,000-lot $57.5/$47.5 put spread at a net premium of $1.80 each, makes maximum profits of $8.20 per contract should shares in ConocoPhillips drop 18% from the current price of $58.08 to $47.50 by August expiration.

CIEN - Ciena Corp. – Bullish options on Ciena Corp. are changing hands at a clip this morning, with shares in the communications equipment provider up 6.5% on the session to stand at $15.55 as of 11:15 a.m. ET in New York trading. Ciena’s shares are rising in sympathy with JDS Uniphase Corp, after better-than-expected second-quarter earnings released from the company after the close on Wednesday sent its shares up more than 18% today. Ciena reports first-quarter earnings in March, and some traders appear to be establishing bullish bets on the stock to position for shares to extend gains. Upside call buyers looked to the Mar. $16…
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Molson Coors Shares Fizzle After Earnings Amid Down-Day For Stocks

 

Today’s tickers: TAP, PFE & CIEN

TAP - Molson Coors Brewing Company – Shares in the beer brewing company are on the decline today, joining the broad-based sell-off in equities as investors re-focus attention on the debt crisis in Europe and looming fiscal cliff in the U.S. with the conclusion of Tuesday’s Presidential election. Molson Coors shares are down roughly 4% as of 12:10 p.m. ET to stand at $41.48 after the company reported better-than-expected third-quarter profits, but missed revenue estimates, ahead of the opening bell this morning. One or more options traders appear to be bracing for further declines in the price of the underlying shares during the five months. It looks like strategists purchased more than 1,000 puts at the April 2013 $40 strike for an average premium of $1.90 per contract. The bearish puts may be profitable at expiration if TAP’s shares drop more than 8% from the current level to breach the average breakeven price of $38.10 at expiration next year. Shares in Molson Coors Brewing Co. last traded below $38.10 in June.

PFE - Pfizer, Inc. – Pharmaceuticals giant, Pfizer, Inc., is trading well off its lowest level of the session at present, down 0.95% at $24.26 as of 12:40 p.m. ET after earlier sliding as much as 2% to an intraday low of $23.99 on Wednesday morning. Heavy trading traffic in weekly options with two full trading sessions remaining to expiration indicates short-term bets on the stock are looking for shares to move. The bulk of the volume is in weekly calls looking for a quick rebound in the price of the underlying, though buyers did generate some traffic in the weekly puts as well. Weekly options volume is greatest in the Nov. 09 ’12 $25 strike call where upwards of 9,700 lots changed hands against open interest of 6,548 contracts. Most of the calls in play this morning appear to have been purchased for an average premium of…
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Option Traders Remain Skeptical Over Real Estate Shares

Today’s tickers: IYR, CIEN, FXI, MTB, TGT, MTW & HURN

IYRBearish option traders honed in on puts in the January 2010 contract of the U.S. real estate ETF. Such positioning indicates that the current 1.5% rally in shares to $38.17 today will not last. Pessimists picked up 10,000 puts at the in-the-money January 40 strike price for 6.23 apiece and spread the purchase against the sale of 20,000 puts at the lower January 25 strike for an average premium of 86 cents each. The net cost of the ratio put spread amounts to 4.51 and yields maximum potential profits of 10.49 per contract if the IYR plummets 35% to $25.00 by expiration in January. Shares must decline 7% from the current price before profits begin to accumulate beneath the breakeven price of $35.49. – iShares Dow Jones U.S. Real Estate Index –

CIENBullish action on the maker of transmission and switching systems for fiber-optic communication networks pushed Ciena onto our ‘hot by options volume’ market scanner this afternoon. Demand for near-term call options has surged amid a more than 7% rally in shares to $12.58. More than 16,000 calls were coveted at the August 12.5 strike price for an average premium of 19 cents apiece. We note that investors who paid 19 cents just before 1 pm EDT were rewarded for beating the crowd. Traders currently (2 pm EDT) looking to get long the same calls must now shell out 45 cents per contract. Those individuals who paid an average of 19 cents will begin to bank profits if shares surpass the breakeven point at $12.69 by expiration on Friday. Option implied volatility on CIEN is currently slightly higher to stand at 73% from an intra-day low of 69%. – Ciena Corp. –

FXILong-term downside protection was scooped up by traders bracing for potential declines in the China exchange-traded fund by expiration in February 2010. Shares of the FXI are currently enjoying a more than 2% rally to $40.02. Approximately 15,000 puts were picked up at the February 38 strike price for an average premium of 4.20 per contract. Downside protection on a long position in the underlying, or profits on a short position, will kick in if the fund declines 15.5% from the current price to breach the breakeven point at $33.80 by expiration. – iShares FTSE/Xinhua China 25 Index Fund –

MTBShares of the bank holding company
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Phil's Favorites

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Courtesy of ZeroHedge View original post here.

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Courtesy of Technical Traders

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

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Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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