Infinera (INFN), a Sunnyvale, CA communications equipment company, is off a nickel to $7.25 and options volume is running 10X the normal, with 5,270 puts and 20 calls traded. The top trade of the day is 153 Oct 7.5 puts on the CBOE for 90 cents. It appears to be part of a larger position and 3,840 now traded, compared to open interest of 5,750. Similarly, 1,509 Jan2010 7.5 calls traded, compared to open interest of 3,794. Implied volatility is easing a bit, to 49.5, and the activity is possibly closing trades, as INFN puts saw a big increase in open interest in early June when the stock was around $9 and $10 (chart). Some players might be taking some money off the table after the roughly 25 percent slide in the share price.
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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.