Markets

Big bear targets new lows in Ciena

One big investor apparently thinks that Ciena may be headed to new lows.

optionMONSTER's Depth Charge monitoring system detected the purchase of about 5,000 April 10 puts for $1.63 and the sale of a matching number of April 7 puts for $0.54. Volume was more than 10 times open interest in both strikes.

CIEN fell 4.58 percent to $11.03 on Wednesday and has lost more than half its value in the last six months. The provider of communications gear plunged in June after reporting weak results and forecasting revenue below expectations.

It bounced at a two-year low of $10 last month, but the option trade is looking for that level to give way. Known a bearish put spread, the strategy cost $1.09 and will earn a maximum profit of 175 percent if the shares close at or below $7 on expiration.

Overall option volume was more than twice the daily average, according to the Depth Charge.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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