OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.

David Russell, a reporter for OptionMonster.

NEW YORK ( TheStreet) -- Ciena ( CIEN) fell on a weak earnings report yesterday, but that wasn't enough to keep down the heavily shorted tech stock.

OptionMonster's tracking programs detected unusual activity in the July 15 calls, which traded 5,409 times against open interest of 768 contracts. Large institutional purchases for $1.60 accounted for the bulk of the activity.

The stock leaped 10% to $15.36 in morning trading and is up 20% in the past month. The maker of telecom gear traded as low as $13.04 yesterday after reporting weak earnings and providing a dim revenue forecast.

However, Ciena found support above its 50-day moving average, which recently crossed back above its 200-day moving average. Chart watchers may interpret the price action as evidence of a bullish uptrend.

Short interest in the stock stood at a lofty 21% of the float Feb. 12. Short sellers may have bet heavily against the shares after yesterday's report and then were forced to cover after today's employment data.

The March 15 calls were the most active, with a mix of buying and selling. However, at 7,614, volume was below open interest in the strike.

Overall options activity in Ciena is more than twice the average level so far today. Calls account for almost three-quarters of the volume.

The writer has no holdings in the securities mentioned.

More from Options

Here's a Better Way to Hedge Using Stock Options

Here's a Better Way to Hedge Using Stock Options

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Crash-Proof Your Portfolio

Let the Najarian Brothers Help You Generate Income With Options

Let the Najarian Brothers Help You Generate Income With Options

Learn Options Trading from the Najarian Brothers, the Best in the Business

Learn Options Trading from the Najarian Brothers, the Best in the Business

All Investors Can Trade Options, Just Ask the Najarian Brothers WATCH VIDEO

All Investors Can Trade Options, Just Ask the Najarian Brothers WATCH VIDEO