Calls Spike as JDS Uniphase Reaches New High

Apr. 1.10 | About: Viavi Solutions (VIAV)

By Pete Najarian

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

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 Heat Seeker tracking system.

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 declined and many competitors were falling.

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.

Disclosure: Author owns JDSU shares