<<Options trading was brisk on Ciena Corp. (CIEN) on Thursday, as more than 57,900 contracts changed hands. This jump in volume was more than eight times the equity's average daily trading volume of 7,221 contracts, according to data from WhatsTrading.com. Furthermore, approximately 61% of the volume changed hands on the call side.
Meanwhile, this call activity runs counter to the growing affinity for puts seen on the ISE and Chicago Board Options Exchange (CBOE). During the past 10 trading sessions, one put has been purchased to open for every call purchased to open on both exchanges. This ratio of puts to calls is higher than 77% of all those taken during the past 12 months.
Furthermore, the SOIR for CIEN comes in at 1.04, as put open interest outnumbers call open interest among options slated to expire in less than three months. This ratio of puts to calls is higher than 52% of all those taken during the past year, pointing to a slightly bearish outlook among short-term speculators.
Short sellers are also placing some heavy bets against the shares. During the past month, the number of CIEN shares sold short increased by nearly 5% to 22.8 million. This accumulation of bearish bets is more than six times the stock's average daily trading volume, and accounts for 25% of the company's total float. An unwinding of these bearish bets could fuel a significant rally in the shares.
Finally, Wall Street is giving the stock the cold shoulder. According to Zacks, the security has earned eight "buy" ratings, nine "holds," and three "sells."
From a technical perspective, the shares of CIEN are up more than 18% since the beginning of the year. The security has recently turned lower, however, following a rejection at the 20 level. The stock is now declining under resistance at its 10-week and 20-week moving averages as it tests support at the 12 level.>>
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