A long-term put sale led yesterday's option activity in genetic-testing company Sequenom.
optionMONSTER systems detected the sale of 2,500 January 3 puts in one print for $0.65. The volume topped the previous open interest in that strike, so this is clearly a new position.
The put seller will keep the $0.65 credit as profit if SQNM stays above $3 by expiration early next year. But given that these options are just in the money , the trader may be hoping that the shares will stay below that level so that they could be bought for an effective purchase price of $2.35. (See our Education section)
SQNM was down a penny to $2.89 at yesterday's close, giving up gains from earlier in the session. Shares have been trending higher from support at $2 in the last three months.
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Yesterday's put sale pushed total option volume in Sequenom to 4.5 times its daily average for the last month.
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