JDS Uniphase Gets Huge Option Trade (JDSU)

One trader seems to think JDS Uniphase (JDSU) will be trading higher in the near future.  The trader bought 14833 July $13 calls right around 2PM today.  This was an opening trade, though not all the calls went through at the ask.

This 4 times the usual option volume comes on a day that is seeing above average volume in the common stock. JDSU is currently trading at $12.32 up 59 cents or about 5%.

This is a pretty big bet at $220,000 or so, and a rather unusual options trade for JDS Uniphase.  This is clearly not a play on an earnings leak, as JDSU doesn’t announce Q4 earnings until August 11, 2014.

There is no other news today, so we are going to go out on a limb and guess this is either a leaked upgrade / price target increase, or, tied to stock in some way, or some new deal/contract to be announced.

Looking at the current analyst coverage, JDSU is already rated “OVERWEIGHT”  and has a price target of about $15.  While certainly possible, it doesn’t seem likely that there is an impending price target increase from a major analyst.  We can’t predict whether a deal is coming down the pipes, so we don’t trust this big call buy signal, so will sit this one out.

JDS Uniphase (NASDAQ:JDSU) has a 52 week trading range of $10.29 to $16.61 and has been on a nice uptrend since the sub $11 range in early May.

We’ll have to wait and see where this option trade goes from the sidelines.

Here’s the chart on JDS Uniphase (JDSU)