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November 20, 2013  Wed 9:23 AM CT

Biomarin Pharmaceutical is up this morning, and one trader apparently believes that any downside will be limited in coming weeks.

optionMONSTER systems detected the sale of 2,480 December 60 puts for the bid price of $0.60. This is clearly a new position, as previous open interest at that strike was just 591 contracts.

The put seller is looking for BMRN to hold above $60 in the next month. The trader also takes on the risk of having to buy shares if they fall below that strike price by mid-December. (See our Education section)

BMRN is up 5.31 percent to $70.46 this morning. The stock has run up from support at that $60 level in the last week, bringing it back to the middle of its recent range. Shares were at a high of $80.67 in mid-September. 
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Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

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