OptionMonster's Heat Seeker tracking system detected unusual call volume in the networking-technology name on Wednesday. Traders snapped up more than 6,000 Weekly 22.50s expiring this Friday, Jan. 9, mostly for 30 cents. They also bought the February 23s for 82 cents and the January 23.50s for 16 cents to 20 cents.
These long calls lock in the price where traders can buy the stock, letting them play for a rally at limited cost. The contracts can also generate significant leverage if shares move higher.
Juniper ended the session up 2.24% to $22.38. It has been making higher lows along its 50-day moving and outperforming the S&P 500. Earnings are due Jan. 27.
Total option volume in the name was 11 times its daily average for the last month, with calls outnumbering puts by almost 12 to 1.
-- Written by David Russell of OptionMonster