Juniper Networks, Inc (JNPR) is a company that designs and sells network infrastructure products and services. The company’s stock is currently trading around $18.97 in a 52 week range of $15.62-$22.98. The stock has been underperforming the market this year having fallen over 3.7% year to date. Despite this weakness in the stock we have seen options traders make some very bullish bets on JNPR today. Early in today’s trading session a trader sold 3,962 JNPR Dec 19 puts for $0.76. This is a very bullish bet that has also involves a high level of risk meaning this traders conviction is relatively high. Although JNPR has been trading in bearish territory since they reported earnings on Oct 22nd we believe that this order signals for a great covered call set up in JNPR.
Trade: Buying 100 Shares of JNPR at $18.97 for every 1 Dec 19 Call sold at $0.76
Reward: $79 per 1 lot
Breakeven: $18.21
Should shares of JNPR close above $19.00 on December expiration this trade will net its maximum potential profit of $79 per 1 lot. This trade is also profitable anywhere above $18.21. If shares close above $19.00 on expiration this trade will net an annualized return of 48.3%.
