Ciena Stock Support in Place Amid Breather

Ciena Corporation's second-quarter profits and revenue were better than Wall Street expected

Ciena Corporation (NYSE:CIEN) stepped into the earnings confessional this morning, reporting fiscal second-quarter profits of 76 cents on revenue of $894.1 billion, both of which were higher than analysts' estimates. According to a report from AlphaStreet, the network strategy and technology company suspended its share repurchase program and is "exercising prudent operating expense management." Despite this, the shares of CIEN are down 0.9% to trade at $55.83 this morning.

Ciena stock has nearly doubled since its March 16 bottom at $30.58, and is fresh off a new 18-year high yesterday. Longer term, the stock boasts a 12-month gain of 58%, and shorter-term, CIEN has found emerging support at its 20-day moving average. Despite today's pullback, CIEN's 12-month consensus price target of $53.88 is a 3.8% discount to current levels, which indicates price-target hikes in the near future could keep the wind at the equity's back.

Meanwhile, in the option pits, there is a strong preference for puts lately. CIEN sports a 10-day put/call volume ratio of 0.89 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the elevated 76th percentile of its annual range. So while calls still outnumber puts on an absolute basis, the high percentile suggests a healthier-than-usual appetite for short puts of late.

Today, options traders are coming out in droves. At last check, over 8,000 contracts have changed hands, five times the average intraday amount and volume pacing for the 97th percentile of its annual range.