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November 30, 2016  Wed 6:14 AM CT

Traders apparently believe that downside potential will be limited for Infosys Technologies in the long term.

OptionMonster's monitoring systems detected the sale of 6,500 January 2018 12.50 puts in two prints for $0.89 yesterday. Volume was well above the strike's open interest of 1,232 contracts, showing that these are new positions.

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)

INFY fell 0.41 percent to $14.50 yesterday and is down 8 percent in the last three months. The technology outsourcing company is scheduled to announce quarterly numbers before the market opens on Jan. 13.

Overall option volume was 4 times greater than average in the name yesterday.

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