InterMune's stock price has been cut in half in the last year, but one trader is betting that it will hold above recent support levels in the near term.
optionMONSTER's scanners detected the sale of 2,000 December 8 puts in a single print for $0.14. That volume was 11.5 times open interest in the strike at the start of the session, indicating that this is a new position.
ITMN, which fell 2.73 yesterday to close at $8.91, had traded over $18 a year ago. The stock gapped lower in laste July after second-quarter revenue missed expectations and has been range-bound between about $8 and $10 for the last three months.
The drug developer's lead product, a treatment for pulmonary fibrosis called Pirfenidone, is in Phase III trials. Until the results of those tests come in, yesterday's put seller apparently believes that ITMN will hold above the $8 strike price at least through expiration on Dec. 22. (See our Education section)
Overall option volume in the name was 8 times its daily average.
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