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Put sale sees Infinity holding firm

Mike Yamamoto (mike.yamamoto@optionmonster.com)

One trader apparently believes that Infinity Pharmaceuticals will hold current levels for the next five weeks.

optionMONSTER's tracking systems detected the sale of 2,000 February 12 puts in one print for the bid price of $0.60 this morning. This is clearly a new position, as open interest in the strike was 822 contracts before the trade appeared.

These short puts are looking for INFI to stay above $12 through expiration in mid-February, at which time the $0.60 credit would be kept as profit. But if the stock falls below that strike price, the trader will be on the hook to buy shares at that level. (See our Education section)

INFI is up 1.78 percent to $12.57 this morning. The drug developer fell after providing 2014 guidance at the JP Morgan Annual Healthcare Conference on Monday, but the stock bounced at support near its 52-week low yesterday. The company has not announced the schedule for its next quarterly report, but last year's calendar suggests that it will be released in early March.

The put sale made up almost all of today's option volume in Infinity so far today, which is already more than triple its full-session average for the last month.

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