Options Trading News

September 23, 2016  Fri 5:16 AM CT


At least one trader apparently sees little downside risk in Ariad Pharmaceuticals.

optionMONSTER's tracking programs detected the sale of 2,000 November 13 puts in one print for $0.90 yesterday. This is clearly a new position, as open interest in the strike was a mere 11 contracts before the trade occurred.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

ARIA rose 1.64 percent to $13.63 yesterday and is up 84 percent in the last three months. The drug maker is expected to report earnings in pre-market hours on Nov. 3.

Overall option volume in the name was twice its daily average yesterday.

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