Software name Ciena Corp (NYSE:CIEN) fell 18.8% to trade at $505 this morning, brushing off fiscal second-quarter earnings and revenue beat. The tech company also lifted its full-year guidance, citing a rise in optical networking demand for AI data centers.
Despite today's pullback, CIEN remains near its June 3, 18-year highs and up 120% year-to-date. However, this morning's drop has shares slipping below long-term support at the ascending 20-day moving average.
Contrary to the stock's long-term outperformance, options traders have been bearish toward CIEN. The equity's 50-day put/call volume ratio of 1.17 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks in the 80th annual percentile, meaning should this bearish sentiment unwind, it could leave room for bulls to move in.
Lastly, CIEN's Schaeffer's Volatility Scorecard (SVS) comes in at 84 out of 100. This suggests the equity has consistently realized higher volatility than its options have priced in.
