Protalix Bio gets vote of confidence

optionMONSTER

Protalix Bio Therapeutics has been drifting lower for months, but one trader apparently believes that the stock will hold at current levels.

optionMONSTER's tracking systems detected the sale of 2,000 June 5 puts for $0.16 this morning. This is clearly a new position, as open interest in the strike was just 120 contracts before the trade appeared.

The put seller is betting that PLX will stay above the $5 strike price through expiration in mid-June. If the stock falls below that level, the trader will be on the hook to buy shares at an affective price of $4.84 once the $0.16 credit from the put sale is included. (See our Education section)

PLX is up 0.38 percent to $5.25 today. Shares of the drug developer gapped up above $6 in early February but have been trending lower since then and are now near a support level that goes back to last November.

Today's put sale made up almost all of the option volume in Protalix, which has averaged just 176 contracts a day for the last month.

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