Ironwood Pharmaceuticals has been sitting at a key level, and one investor thinks support will hold.
optionMONSTER's tracking programs detected the sale of 5,000 September 12.50 puts for $0.40. Volume dwarfed previous positioning of 130 contracts, so this was a new opening trade.
The put seller is looking for IRWD to remain above the $12.50 strike price in over the next five weeks. If it does, they keep the premium as profit. Under that level, he or she must buy shares. (See our Education section.)
IRWD rose 2.52 percent to $13.40 in morning trading. It's found support at $13 of late, and hasn't gone below that price since mid-May. It was above $14 before earnings two weeks ago.
Total option volume is 29 times greater than average so far in the session.
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