Ciena Falls Out of Bed

Ciena Corp (NASDAQ: CIEN) is dropping like a stone this morning, currently trading down 9.27% to $13.20. This comes after the company announced earnings that missed estimates by a wide margin. Ciena also gave very weak guidance for the upcoming quarter, not a great recipe for your stock price.

Options action this morning is predictably bearish with the April $12.50 put purchased over 5,000 times. It also looks like someone executed a short call spread in the April $14/16 strikes—another bearish sign.