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JDS Uniphase Upgrade Lifts Shares, Bullish Options

Thursday, 1 Apr 2010 | 10:47 AM ET

JDS Uniphase hit another 52-week high yesterday and attracted upside option activity after getting a new upgrade.

Trading was concentrated at the June 13 strike, where 13,664 calls turned over against open interest of just 1,624 contracts, clearly opening new positions. Almost all of the calls traded in a strong buying pattern from $0.90 to $1.05, according to OptionMonster's real-time tracking systems.

The telecom equipment maker finished the regular session up 4.42 percent to $12.52 and rose another 1.76 percent in after-hours trading, continuing to run since its breakout in mid-February. The company reached its latest 52-week high earlier in the day at $12.86 against strong headwinds as the broader markets fell and many competitors declined. (Check share price now: )

Thomas Weisel gave another boost to the optical networking products company, raising its price target to $15. Investors jumped in with some very aggressive stock buying in multiple large blocks in February and early March, and option traders followed suit.

For the calls purchased yesterday to be profitable, the stock would need to rise roughly 12 percent by expiration in mid-June. The company has not yet scheduled its next earnings report.

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Disclosures:

Najarian owns JDSU shares.

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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