Infinity Pharmaceuticals is dropped sharply in recent months, but one trader apparently believes that further downside will be limited.
The July 15 puts make up almost all of the volume in INFI, which already tops its full-session average for the last month. optionMONSTER systems show that a trader sold 3,000 of those puts for the bid price of $0.35 in volume well above the previous open interest of just 661, so this is a new position.
The put selling is a bet that INFI will hold above that $15 level over the coming weeks. If the stock is below that strike price, the trader will face the obligation to buy shares at that level. (See our Education section)
INFI is up 3.6 percent to $16.79 this morning, one session after posting its lowest close since last August. The drug developer was above $50 into the start of April.
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