Brocade Communications Systems, Inc. (NASDAQ: BRCD) is getting spanked now that H-P is buying 3Com rather than it. We have also seen downgrades from Piper Jaffray, ThinkEquity, and Lazard. At 8:35 AM EST we have already seen 3.8 million shares trade hands and the stock is down some 10% at $8.31. We would watch options here as well because the open interest was well over 300,000 contracts in the NOV09 CALL strikes combined as many were betting that Brocade would be the buyout target. This takes the stock back under the 50-day moving average of $8.56. The 200-day moving average is all the way down at $6.61 and a pre-merger-hope trading range was $7.75 to $8.25.