This FMI trader is looking for the stock to rally by November to get the trade above water.
Foundation Medicine Inc., trading 20.63 with an IV30 of 64.05 up .97 and an HV10 of 58.35, saw a large put roll today.? The stock trades 452 contracts a day and has OI of 13261.? A trader that was short 2100 of the August 40 puts bought his or her puts at 19.02 and paid 19.17 to roll the trade back to November.? Net he or she sold the Aug-Nov 40 put spread for .15
About a year ago FMI was trading near 50 dollars a share.? This appears to be a large put seller from way back that has been rolling a short put position in order to not realized a large loss in the books, and/or avoid delivery in this name.? The trader is looking for the stock to rally by November to get the trade above water.
The trade should be considered hopeful the underlying rallies and has little vol exposure.