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JDS Uniphase Corporation (JDSU - 10.97) saw an upswing in call volume yesterday, after Credit Suisse said upbeat guidance from sector peer Oclaro (OCLR) bodes well for the company. Nearly 6,900 of these options crossed the tape, which was double the equity's average daily volume. Over 4,800 calls were exchanged at the at-the-money January 2012 11 strike -- most of them between the ask and bid prices, making it difficult to say with certainty whether they were bought or sold. However, open interest on this option rose by 1,370 contracts overnight, suggesting that some of the volume at this strike consisted of newly opened positions. This call is now home to open interest of 7,379 contracts.
What's more, the Schaeffer's put/call open interest ratio (SOIR) for JDSU stands at 0.54, indicating that calls nearly double puts among options set to expire within three months. This ratio ranks in the 20th percentile of its annual range, meaning that near-term options players have been more bullishly aligned toward the stock just 20% of the time during the past year.
Further cementing this positive sentiment surrounding JDSU is its 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio, which checks in at a whopping 28.35, meaning that calls bought to open have outnumbered puts by more than 28 to one during the past two weeks. In fact, this ratio is just one percentage point shy of a yearly peak, confirming that traders have been snatching up bullish options over bearish at an almost annual-high clip.
On the technical front, JDSU has underperformed the broader S&P 500 Index (SPX) by more than 12% during the past 40 sessions. On the charts, the stock appears to be testing its 10-week and 20-week moving averages, which have acted as resistance since April. In early trading, JDSU has slipped about 0.3% to flirt with the $10.97 level.