Option Trade 
Juniper Networks, Inc. (NYSE:JNPR) Puts 
Thursday, July 30, 2015

**OPTION TRADE: Buy the JNPR Sep 2015 26.000 put (JNPR150918P00026000 at approximately $0.45. Place a protective stop loss at $0.15, and a pre-determined sell at $0.90.

by Ian Harvey

July 30, 2015

Juniper Networks, Inc. (NYSE: JNPR), that designs, develops, and sells products and services for high-performance networks to enable customers to build networks for their businesses, in the last 200 days, the share price has seen a stable gain of 32.81% and is now in a very strong bullish uptrend, but despite this fact there are many negative factors to consider – insider selling, hedge fund ownership declining, analysts’ poor ratings and the August declining syndrome.

Jonathan Davidson, an insider and also EVP Juniper Dev & Innovation unloaded 2,957 shares of the exchange-traded company. Jonathan Davidson’s transaction was valued at $80,677 USD – based on an average price of $27.3 for every share.

Also, it was exposed in a legal report filed with the Washington-based SEC that Vincent Molinaro, who works for Juniper Networks, Inc., and is the EVP Chief Customer Officer finalized an insider trade on July 29, 2015. Vincent unloaded 14,290 shares of the -listed company based at an average price of $27.3 U.S. Dollars a share, with the total amount of the trade being $390,003 U.S. Dollars.

When viewing institutional investors owning shares of Juniper Networks Inc, in the previous quarter it was recorded that 384 participated. The tracked institutional investors have historically had a very high interest in the firm, and that was also the case in Q4 2014. The institutional ownership was 78.27% of the stock’s outstanding shares. They decreased by 12.41 million the total shares they hold. As of that quarter these banks and asset managers owned 316.07 million shares. A total of 52 funds opened new positions in Juniper Networks Inc and 91 increased their holdings. There were 72 funds that closed their positions and 193 that reduced them.

Also, Juniper Networks has received a consensus recommendation of “Hold” from the twenty-six ratings firms that are covering the company. Fourteen analysts have rated the stock with a hold recommendation and twelve have given a buy recommendation to the company. The average 12-month target price among brokers that have issued ratings on the stock in the last year is $27.63.

Even though JNPR has been impressive on the charts, last week the stock gapped up to a four-year high of $29.13, following an earnings-induced round of positive analyst atttention, However, if past is prologue, the shares will probably decline next month if history repeats itself. During the past 10 Augusts, JNPR has been positive only twice, and posts an average one-month loss of 2.7%.

A repeat performance would be bad news for option bulls. JNPR's 50-day ISE/CBOE/PHLX call/put volume ratio of 2.27 outranks almost three-quarters of all similar readings taken in the last year. A capitulation among these optimists could spell choppy waters ahead.

The Harvey’s Options Volatility Indicator certainly shows that this situation is a major possibility.

Therefore, based on the facts above, the following option trade is recommended…..

**OPTION TRADE: Buy the JNPR Sep 2015 26.000 put (JNPR150918P00026000 at approximately $0.45. Place a protective stop loss at $0.15, and a pre-determined sell at $0.90.

”Success is simple. Do what's right, the right way, at the right time.”

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Options traders are not successful because they win.
Options traders win because they are successful.

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