Ariad Pharmaceuticals has been rebounding in recent days, and one trader is betting on a floor beneath the drug developer's stock.
optionMONSTER systems detected the sale of 3,000 May 15 puts for the bid price of $0.25 yesterday. The volume was more than 10 times the strike's open interest before the session began, clearly showing that this is a new position.
The put seller is betting that ARIA will remain above $15 through expiration in mid-May. But if the stock falls below that strike price, he or she will face the obligation to buy shares at that level.
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ARIA gained 3.9 percent yesterday to close at $18.13 after bouncing off support around $16.30 last week, its lowest levels since last June. The stock was above $22 a month ago and hasn't been below $15 since last April.
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