Infosys (INFY, news, chart, volatility) options are active. Shares of the Bangalore, India information technology company are trading down $1.55 to $35.69. In the options market, volume is running three times the usual. 7,080 INFY calls and 755 puts have traded on the day. The top two trades of the day include 2,452 of the January 37.5 calls trading offerside for $3.20 and 2,452 of the January 45s bidside for $1.00 a contract. The action is possibly rolling of 45s to the 37.5s (open interest in the 45s is 5,792, compared to open interest of 141). It is possibly also a bull call spread, or buying the 37.5s and selling the 45s. If so, the strategist is paying a debit of $2.20 per spread and has the potential of making $5.30 if INFY rallies to $45 or more by January options expiraiton.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.