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Options Traders Snapping Up Ciena

Traders were snapping up calls in Ciena as the networking company's shares jumped more than 18 percent yesterday.

The options activity was centered on the purchase of more than 2,100 April 7.5 calls against open interest of 2,018 contracts, according to OptionMonster's tracking systems, which identify unusual trading. Calls outnumbered puts by 6 to 1 in this bullish action.

Ciena ended the day at $8.40 in nearly triple the average share volume. The activity in CIEN stock and its options coincided with a number of news developments involving the company and its industry. Barclays upgraded Ciena Tuesday, with a price target of $10, and market leader Cisco moved higher on news of its own.

In addition, technology blog GigaOM broke a story Sunday night that two smaller networking companies were merging. The report could have raised speculation that Ciena would be a buyout candidate as well.

More Options Tips from Jon Najarian

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Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.

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