One investor is hoping that time will heal a wound inflicted by
optionMONSTER's tracking systems detected the sale of 5,000 January
8 puts in the maker of obesity drugs for $2.28. An equal number of
August 9 puts were bought at the same time for $2.23, but volume
was below open interest in those.
ARNA rose 1.01 percent to $6.94 on Friday, so those puts are
in the money
. That suggests the investor sold the August 9s at some point in
the past, looking for shares to hold their ground. But then they
fell below the strike price, putting the trader at risk of being
assigned shares on expiration two weeks from now.
Adjusting the position gives them more time for a rebound. It also
lowered the price at which they must get long, and yielded a credit
of $0.05. If the stock rebounds over $8 by January expiration, the
contracts will expire worthless. (See our
section for more on
Total option volume was almost triple the daily average in the
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