It looks like one trader sold 10,000 of the Jan ’15 $20 puts at a premium of $1.20 apiece to partially offset the cost of buying a 10,000-lot Jan ’15 $25/$35 call spread for a premium of $2.90 each. The net cost of the three-legged options trade amounts to $1.70 per contract, thus positioning the trader to make money in the event that Juniper’s shares rally another 3.0% over today’s high of $25.96 to exceed the effective breakeven point at $26.70. Maximum potential profits of $8.30 per contract are available on the trade should shares in Juniper Networks soar 35% to $35.00 by expiration next year.
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