One trader apparently believes that Infinity Pharmaceuticals will see limited downside this week.
optionMONSTER systems show that today's activity is focused on the June 16.50 puts, which expire at the end of Friday's session. A trader sold 3,000 of those puts for $0.27 against no open interest at that strike, indicating that this is a new position.
The put selling is a bet that INFI will hold up above the $16.50 strike price through the end of this week. The trader is willing to buy shares if they are below that level but will have an effective buying price of $16.23 when the credit from the put sale is factored in. (See our Education section)
INFI is up 1.4 percent to $17 this morning but has plummeted in recent months. Shares did get as high as $50 but formed a bearish double top on its chart at that level going into early April.
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