A trader is looking to take advantage of the recent rebound in genetic-analysis company Affymetrix.
optionMONSTER systems detected the sale of 3,000 February 7.50 puts for the bid price of $0.40. This is clearly a new position, as previous open interest at that strike was just 589 contracts.
The put seller is looking for AFFX to hold above $7.50 in coming weeks. If the stock falls below that strike price, the trader would be on the hook to buy shares at that level. (See our Education section)
AFFX surged 11.52 percent to close at $8.81 yesterday. It was as low as $8.16 in the morning and $7.85 on Monday but reached a high of $8.90 on Dec. 24, its highest price since October 2009.
Yesterday's put sale made up the vast majority of Affymetrix's total option volume in the session, which was 20 times its daily average for the last month.
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