OptionsHouse

Options Trading News

April 11, 2013  Thu 9:12 AM CT

INFI: SEE CHART GET CHAIN FIND STRATEGIES
Infinity Pharmaceuticals has pulled back from 12-year highs, but one trader apparently believes that any further downside will be limited.

optionMONSTER systems show that a trader sold 3,000 May 35 puts for $0.80 and another 1,000 for the bid price of $0.75. These are clearly new positions, as open interest in the strike was just 1,125 contracts before the session began.

The put selling is a bet that INFI will hold above $35 through mid-May. If it falls below that strike price, the trader faces the risk of having to buy shares at that level. (See our Education section)

INFI is up fractionally at $42.56 after dipping as low as $40.78 this morning. Shares were above $50 just last week, posting their highest close since 2000.

More than 7,600 INFI options have changed hands so far, about triple its daily average.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »