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September 23, 2016  Fri 5:16 AM CT

ARIA: SEE CHART GET CHAIN FIND STRATEGIES

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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