A bet in options mart predicts 7per cent infy fall
They expect Infosys stock price would fall after it announces its results for the third quarter.
Hyderabad: Two trades in the options market have bet that Infosys will fall as much as seven per cent by February 2019, a US-based US news agency said.
According to a report in Bloomberg, two trades in Infosys have wagered a notional amount of $29 million on Infosys.
They expect Infosys stock price would fall after it announces its results for the third quarter.
Quoting Bloomberg’s Block Trade Monitor, the news agency said: “The first one on buying a February put option — a right to sell at an agreed price—on Infosys at Rs 620 apiece or seven percent below the December 20 close. And the other one selling a January call option—right to buy at a predecided price — at Rs 750 or seven percent above the last close.”
“While it’s not possible to identify the trader, such bets are executed to hedge against a decline and it seems that the trader(s) financed this protection by selling the higher strike calls,” the agency said. On Friday, Infosys stock fell over 3.16 per cent to end at Rs 645.75 apiece.