Infinity Pharma is seen holding gains
Chris McKhann | [email protected]
INFI was up 3.52 percent to close at $24.11. The drug developer has been climbing since the end of January, when it fell to $6 and based there.
optionMONSTER's systems detected a block of 2,500 November 20 puts sold for the bid price of $0.65. Then, exactly an hour later, a block of 2,000 was sold for the same price with the stock a few pennies higher. The volume dwarfed open interest in the strike of just 48 contracts at the beginning of the day, clearly indicating new activity.
The put selling is a bet that INFI will remain above $20, a level it broke through just three weeks ago, through the November expiration. The trader is also showing a willingness to buy shares on a pullback below $20, though the effective purchase price would be $19.35 including the credit from the put sale. (See our Education section)