J.P. Morgan Suggests Selling Calls on Ciena Corporation

J.P. Morgan is out with a research note this morning, where it suggests that traders look to sell calls against their long stock position in Ciena Corporation (NASDAQ: CIEN).

The JPM analysts cited a recent fundamental report, which stated that the company's analyst day arose more questions than answers. The removal of a specific longer-term revenue growth target increased JPM's concerns that visibility is diminishing.

For traders not willing to sell their stock, the analysts recommend selling the July 2011 $18 call for $0.50.

Ciena Corporation is a provider of communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video and data traffic.