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Option Action in Brocade Communications Systems Suggests Big Price Move Forthcoming (BRCD)

Written on Wed, 07/28/2010 - 12:16pm
By Chip Brian

Shares of Brocade Communications Systems (NASDAQ:BRCD) are trading relatively unchanged, recently trading at $5.04. The stock has been drifting lower over the past ten trading days and is currently trading in a technical downtrend.
The call volume today is 22,933 contracts, which is 4x the average daily volume of 5,640. The put volume is 3,837 contracts, which is 3x the average daily volume of 1,425. Heavy volume in both puts and calls suggests that traders are expecting a big move but are unsure of direction.
SmarTrend alerted subscribers to take profits in Brocade Communications Systems on November 24, 2009 at $7.30, since then the stock fell 30.9%. We are now watching for any positive developments that could result in a new uptrend signal.

Keywords: brocade communications systems unusual option volume

Ticker(s): BRCD

Contact Chip Brian



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