Informatica plunged early this month after warning that earnings would fall short, but one trader apparently believes that further downside will be limited.
optionMONSTER's tracking systems shows that 4,798 November 25 puts traded in a strong selling pattern in large blocks at an average price of $0.85 today. The volume dwarfed open interest of just 148 contracts in the strike at the start of the session, indicating new activity.
INFA is up 0.3 percent to $27.18. Shares gapped down to the $26 level from above $33 on Oct. 4 when the business software company warned that earnings and revenue would miss forecasts , citing weak demand in Europe. It will formally release its third-quarter results on Oct. 25.
Today's put seller is looking for INFA to be above the $25 strike price at expiration on Nov. 16. If it is below that level, the trader faces the requirement to buy shares at an effective price of $24.15.
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