Bull & Bear: JDS Uniphase Corporation (JDSU)

Shares of JDS Uniphase Corporation

are lower on the session by 2.49%, trading at $18.04. With share volatility skyrocketing over the past few weeks, you have to wonder where the stock is heading next… Bulls: Given the recent price decline in shares, it is hard to jump on the Bull bandwagon, but JDS Uniphase is now sitting on top of a major support/resistance level. This $18.00 level was where shares screamed higher back in February, jumping to over $22.00 in a matter of days. Bulls will also note that shares are very oversold and that the 200-day moving average is still uptrending. Call volume has also started to pick up over the past few days. A bullish trader could consider buying the June $18/21 call spread for a net debit of $1.07 as a cheap way to play a surge in the name. Bears: Bears will note that they are firmly in control of shares with both the 20-day and 50-day moving averages now downward-trending. If shares were to close below the $18.00 for a few days, consecutively, bulls may be forced to liquidate shares. Bears will also note that sell volume has eclipsed buy volume over the past few months, both of which are running at all time highs. A bearish trader could consider buying the June $18.00 put for $1.60 and selling the June $21/15 strangle for a net credit of $1.12. JDS Uniphase Corporation is a provider of communications test and measurement solutions and optical products for telecommunications service providers, wireless operators, cable operators, and network equipment manufacturers. The company is also a provider of communications test and measurement solutions and optical products for telecommunications service providers, wireless operators, cable operators, and network equipment manufacturers.