Market News

April 11, 2013  Thu 3:18 AM CT

Ariad Pharmaceuticals has been rebounding in recent days, and one trader is betting on a floor beneath the drug developer's stock.

optionMONSTER systems detected the sale of 3,000 May 15 puts for the bid price of $0.25 yesterday. The volume was more than 10 times the strike's open interest before the session began, clearly showing that this is a new position.

The put seller is betting that ARIA will remain above $15 through expiration in mid-May. But if the stock falls below that strike price, he or she will face the obligation to buy shares at that level.
(See our Education section)

ARIA gained 3.9 percent yesterday to close at $18.13 after bouncing off support around $16.30 last week, its lowest levels since last June. The stock was above $22 a month ago and hasn't been below $15 since last April.
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