Early Buyers Target JDS Uniphase


The bulls had their horns out for JDS Uniphase yesterday, looking for a rally.

Buyers snapped up the October 13 calls, paying $0.36 to $0.39. More than 9,300 traded versus previous open interest of just 153 contracts, according to our data systems.

Those calls(learn more) lock in the price investors must pay to buy shares in the maker of communications equipment. If it rallies, the calls can generate some nice leverage, but they will also expire worthless if it doesn’t move.

JDS Uniphase shares fell 0.85 percent to $11.62 yesterday. The company reported earnings recently, beating on both the top and bottom lines despite challenging economic conditions. The valuation of forward earnings is fair and management has been navigating in a tough environment.

CEO Tom Waechter is also scheduled to make a presentation at the 2012 Citi Global Technology Conference on Wednesday, Sept. 5.

Calls outpaced puts (learn more) in the stock by about 12,000 to 1,900 yesterday. Total volume was 4 times greater than average.

—By CNBC Contributor Pete Najarian

Additional News: JDS Uniphase Posts Quarterly Loss on Impairment Charge

Additional Views: Option Bulls Expect More From KKR Financial: Najarian


Options Trading School:


Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC’s “Fast Money” and co-founder of OptionMonster.com. Najarian owns JDSU calls.