Illumina attracts vote of confidence
Traders are betting that downside potential will be limited in Illumina.
optionMONSTER's tracking systems detected the sale of nearly 3,500 March 185 puts for $1.10 to $1.20 yesterday. Open interest in the strike was just 500 contracts at the start of the session, indicating that new positions were established.
The traders collect the premium from the option sales and are looking for ILMN to stay above $185 through expiration in mid-March. If the stock falls below that strike price, the put sellers will be on the hook to buy shares at that level. (See our Education section)
ILMN is down 0.72 percent to $194.06 in midday trading. The genetic-analysis company hit an all-time high of $213.33 after reporting earnings on Jan. 27 but pulled back and has been trading sideways since.
The put selling pushed yesterday's total option volume in ILMN to 7 times its daily average for the last month.
More From optionMONSTER
