Bears expect more pain for Informatica

By optionMONSTER December 21, 2011, 10:46:39 AM EDT

Informatica is down along with other software names today, and the bears expect more downside.

optionMONSTER's Depth Charge monitoring system detected the purchase of 3,000 February 37.50 puts for $3.20 and the sale of an equal number of February 32.50 puts for $1.05. There was barely any open interest in either strike when the session began.

The trade resulted in a cost of $2.15 and will earn a maximum profit of 133 percent if the stock closes at or below $32.50 on expiration.

INFA is down 9.29 to $37.20 in morning trading. The provider of business software enjoyed a big run from around $26 to an all-time high of $62.42 between July 2010 and July 2011. It's been falling since then, and issued weak guidance in October.

The main reason for today's decline was a big revenue miss by Oracle last night. (See researchLAB for more)

Overall option volume in INFA is 25 times greater than average so far today, with puts outnumbering calls by 20 to 1, according to the Depth Charge.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Options

Referenced Stocks: INFA



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