Infinity Pharmaceuticals has been trying to come back from a huge drop in the spring, and traders apparently believe that potential downside from current levels is limited.
About 5,000 September 19 puts traded in a strong selling pattern for $1.30 to $1.25, according to optionMONSTER's tracking systems. There was no open interest in the strike before the session began, so this is new positioning.
These put sellers are betting that INFI will stay above $19 through expiration in mid-September. If the stock falls below that strike price, the traders will be on the hook to buy shares at that level. (See our Education section)
INFI is down 1.44 percent to $20.19 this afternoon. The drug developer has plunged some 60 percent since trading above $50 in early April but has been drifting higher since bottoming below $16 earlier this month.
Today's put sale makes up almost all the option volume in the name, which is almost double its full-session average for the last month.
Infinity saw put selling twice earlier this month and drew bullish call buying about two weeks ago.
More From optionMONSTER
- Index, ETF option volumes near midday
- Largest option buying in equities so far
- Nerves on edge before Meritor earnings
- Investment & Company Information