Why trader is selling puts in Infinity
Chris McKhann | firstname.lastname@example.org
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.