Protalix Bio gets vote of confidence

optionMONSTER

One trade is betting that Protalix Bio Therapeutics will hold current levels for the next several months.

optionMONSTER's systems detected the sale of 2,000 May 5 puts, led by a block of 1,912 that went for $0.60. Open interest in the strike was a mere 9 contracts at the start of the session, so this is a new position.

The put seller is looking for PLX to stay above $5 at expiration in mid-May. Below that level, the trader faces the obligation to buy the stock at an effective price of $4.40 once the credit from the put sale is taken into account. (See our Education section)

PLX closed fractionally higher yesterday at $5.33. The biopharmaceutical company spiked higher from below $5 in the previous session on reports that it is on the verge of a deal that would allow it to sell a treatment for a rare genetic disesase on the Brazilian market. The stock broke above its 50-day moving average on that move and is now trying to hold above its 100-day line.

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