Juniper Networks has been coming to life, and the options
continue to flow.
optionMONSTER's Heat Seeker monitoring program has shown aggressive
in the provider of telecom equipment over the last week. Traders
targeted the July 21s for $2.85
and returned to the April 22s for $1.92
the next day
. And now the activity is getting even shorter term.
This time, almost 5,000 Weekly 21.50 calls expiring on Jan. 10 were
sold for $1.30 and 8,500 Weekly 23 calls expiring in the same
session were bought for $0.43. Volume was below open interest in
the 21.50s, so it appears that an existing long position was closed
and rolled to the higher strike.
Making the adjustment lets the investor collect a credit of
$284,500 while allowing him or her to keep benefiting from
potential gains in the share price. (See our
JNPR is up 1.51 percent to $22.56 in afternoon trading and has
risen 21 percent since the beginning of last month. While it's
lagged the broader market since early 2011, the company has beaten
estimates in its last two earnings reports and now sentiment is
shifting in favor of technology stocks.
Total option volume is more than twice the daily average so far
today, according to the Heat Seeker. Calls outnumber puts by a
bullish 20-to-1 ratio.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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