Call toll-free 800.328.1267
Options traders seem to expect a hot summer from a forgotten tech stock.
More than 19,000 July 29 calls traded in Juniper Networks (JNPR) on Friday. Buyers initially paid $0.56 and kept nibbling as the stock moved higher. Pretty soon they doubled to $1.15 and even quadrupled to more than $2 by the afternoon.
Calls fix the price where investors can purchase a security. They can shoot up quickly in value when shares advance but also expire worthless when no rally occurs. See our Knowledge Center for more.
JNPR jolted higher as the calls hit, and closed up 1.79 percent to $27.92. The networking company beat estimates in early May and showed signs of adding customers in the fast-growing cloud space. It wasn’t able to rally at the time because of bearish momentum, but it’s steadily plodded higher since.
Overall option volume was more than 5 times the monthly average in JNPR, and the highest daily volume all year. Calls outnumbered puts by a highly bullish 23-to-1 ratio.
Juniper Networks (JNPR). Notice how stock was unable to rally initially against bearish 50-day moving average.
Money is flowing back into stocks as investors hope for a better inflation report this week. The S&P 500 rose 1.9 percent between Friday, May 3, and Friday, May 10. It was the third straight positive week. More than...
Options are an important tool for many retail investors. They can either replace trading shares, or make it easier to position oneself in stocks. Let’s consider the first things options traders need to know. An Option’s Price Is Usually Called ‘Premium’ ...
Options are complex instruments that can swing sharply in value. Traders may find the moves confusing, so this article will help explain key "Greeks" -- some of the most important factors impacting the price of options. Greeks are Greek letters used in complicated...