Shares of Infosys are in the middle of their recent range, but one trader sees the stock moving higher.
Today's INFY option volume tops 5,300 contracts, which compares to a daily average of 1,100 in the last month. Almost all of that is in the December 45 puts, according to optionMONSTER's tracking systems.
A trader sold 5,000 of those contracts, almost all of them for $2.30. Open interest at the start of the session was just 100, so this is a new position.
The in-the-money put selling is a bet that INFY will be above $45 by expiration, but the trader does see a limited range. The put selling can profit down to $42.70 and will outperform buying the stock directly up to $47.30. (See our Education section)
INFY is off 0.3 percent to $43.90 this morning. The India-based technology outsourcing company was up at resistance around $50 a month ago, its highest level since gapping down from above $56 in mid-April. Shares had fallen to a 52-week low of $37.93 in late July before trending up to that resistance level.
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