JDS Uniphase may have found support at its 200-day moving average, and yesterday (Monday) the options action turned bullish.
The trades accelerated in the afternoon, with heavy buying in the June 18 calls for $0.08 to $0.12, according to OptionMonster's real-time tracking systems. These options expire on Friday, so the traders are looking for a pop in the very near term. More than 12,000 contracts changed hands against open interest of just 2,804.
JDSU stock fell 1.54 percent to $16.60 yesterday and has been dropping since early March, when it was over $26. (See ticker for today's quotes.) Zacks downgraded the name on Friday because of a trend in the optical-component industry that indicates a glut of inventory on the part of telecom carriers.
Overall option volume in the stock was twice the average level yesterday, with calls outnumbering puts by more than 3 to 1.
Pete Najarian has no positions in JDSU.
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