Infosys receives a vote of confidence
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's tracking systems detected the sale of 2,000 April 40 puts in about 1 minute this morning, led by a block of 1,430 that went for $1.70. The volume was 6 times higher than the strike's open interest before today's trading began, so this is clearly a new position.
The put seller is betting that INFY will close above $40 by expiration in mid-April. If it is below that strike price, the trader will face the obligation to buy shares at an effective price of $38.30 when the credit from the put sale is included.
INFY is up 0.61 percent this morning to $42.78. The company, which gapped down from above $48 after its last earnings announcement on Oct. 12, has been trading mostly between $42 and $45 since then. Its next quarterly release is scheduled for Friday in the early pre-market.
Today's put trade made up the bulk of the 2,408 total options that have changed hands so far today in Infosys, which averages 1,273 contracts a day.