Infinity Pharmaceuticals has been climbing a wall of worry, but
one trader apparently believes that it will keep its grip.
optionMONSTER's tracking systems detected the sale of 2,000
September 15 puts for $0.50 against no previous open interest. The
trade accounted for more than two-thirds of the volume in the name
so far today.
creates an obligation to buy shares if a stock falls to a certain
level, $15 in the case of today's trade. Investors use the strategy
when they're bullish but don't want to spend capital getting long.
section for more ideas on how options can be used to make money
passage of time
INFI has rallied 7.48 percent to $17.81 in midday trading and is up
32 percent in the last month. The stock has been ripping higher
despite negative headlines in mid-June, when it halted development
of a cancer drug, and in mid-July, when it announced terminating a
contract with two backers.
The price action has been similar to activity in
yesterday as investors continue to buy up small drug developers in
hope of acquisitions by larger companies.
Overall option volume in INFI is 10 times greater than average so