Infosys (NASDAQ:INFY), a world leader in consulting and information technology services, partners with Global 2000 companies to provide business consulting, systems integration, application development and product engineering services. Through these services, Infosys enables its clients to fully exploit technology for business transformation. Clients leverage Infosys' Global Delivery Model to achieve higher quality, rapid time-to-market and cost-effective solutions.
Shares of INFY soared to an "all-time" high Friday on heavy trading volume as institutional investors poured fresh cash into the leading technology stocks. The move above a recent trading-range top near $71 suggests the rally can be sustained in the coming weeks and with earnings already posted for the quarter, there appears to be little danger of an unexpected sell-off. However, INFY certainly fits the description of a "volatile" issue, thus traders are encouraged to use conservative position management to limit potential losses in the spread.
PLAY (less conservative - bullish/credit spread):
BUY PUT MAR-60.00 IUN-OL OI=15 ASK=$0.45
SELL PUT MAR-65.00 IUN-OM OI=2064 BID=$0.90
INITIAL "NET-CREDIT" TARGET = $0.50-$0.65
POTENTIAL PROFIT (X 5 contracts) = $250
RETURN ON INVESTMENT (max) = 12%
COST BASIS = $64.50
LOSS-LIMIT/EXIT POINT = $68.75 (cons) - $66.50 (aggr)