As shares of Ariad Pharmaceuticals reach 12-year highs this morning, one trader apparently believes that there is a floor beneath the stock.
ARIA is up fractionally at $24.34 after hitting a high of $25.14 this morning. These are the stock's highest levels since the short-lived peak in 2000. Shares are up more than 200 percent from the lows of a year ago.
A trader sold two blocks of 2,500 February 16 puts for $0.30 and then $0.25, according to optionMONSTER's systems. Open interest at the beginning of the day was just 76, so this is a new position.
The put selling is a bet that ARIA will hold above the $16 support level through in five months. (See our Education section)
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