Options Trading News

September 4, 2013  Wed 2:14 AM CT

A trader is looking for Infinity Pharmaceuticals to hold current levels for the next few weeks.

optionMONSTER systems detected the sale of 2,500 September 18 puts for $0.38 in one print yesterday. This is clearly a new position, as the volume was higher than the strike's open interest before the trade appeared.

This put sale is looking for INFI to stay above $18 through expiration in 2-1/2 weeks. But the trader will be on the hook to buy shares if they fall below that level. (See our Education section)

INFI jumped 6.37 percent to $19.69 yesterday. The drug developer fell after reporting quarterly results on Aug. 8 but bounced at $17.50 a week later and has been trading mostly sideways since then, with support at its 50-day moving average.

Total option volume in the name was 2.5 times its daily average for the last month.
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As I stated in last week's article, a break out or a break down needs to have a couple things happen before it is considered a confirmed break out or break down. The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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