Trader sees end to losses in Infinity
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's tracking systems detected the sale of 3,500 September 17 puts at the same second, led by a print of 3,419 that went for $0.75. This is clearly a new position, as open interest in the strike was just 385 contracts before the trade appeared.
The put seller is looking for the stock to stay above $17 through expiration in mid-September, at which time he or she would keep the $0.75 credit as profit. But if INFI is below that level, the trader will be on the hook to buy shares for an effective price of $16.25 when the credit is included. (See our Education section)
INFI is up 1.38 percent to $18.43 this morning. The drug maker has been falling steadily since reporting second-quarter results last Thursday, breaking below its 50-day moving average, and is trying to find support around current levels. It was trading above $22 before that release.
Today's put sale has already pushed total option volume in the name above its full-session average for the last month.