Contrarian Signal Flashing for Ciena Stock

Shares of Ciena Corporation (NYSE:CIEN) have taken a breather since their June 3 25-year high of $637.51. The stock is still up 62.1% year to date, however support emerging at the 200-day moving average and an unwinding of pessimism amongst options traders could help fuel a rebound. 

CIEN sports a 10-day put/call volume ratio of 2.01 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 95% of readings from the past year.

There have been three instances in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and moved into the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, Ciena stock was higher one month later 100% of the time after these signals with an average 13.1% return. From its current perch at $378.95, a move of similar magnitude would place the stock at $428.59.