Infinera stock is on track for a third-straight daily win
Infinera Corp (NASDAQ:INFN) stock is surging today, up 17.2% to trade at $6.17 at last glance, after news that Nokia (NOK) plans to buy the company for $2.3 billion. Both Stifel and Needham downgraded INFN to "hold" from "buy," with the latter noting there were no other likely bidders for Infinera given its lack of "healthy adjacent networking peers."
Today's pop has INFN looking to snap a three-week losing streak and notch a third-straight daily win, as the stock gaps to its highest level since early April. Since the start of 2024, the equity has added 29.8%.
Options traders have been quick to chime in this morning, as the shares have already seen 32 times the average daily options volume. The October 5 put is the most popular contract, followed by the July 6 put, with positions being opened at the latter.
Some of today's price action could be an unwinding of short interest. The 51.45 million shares sold short account for 22.3% of the stock's available float. It would take shorts 17 days to cover their bearish bets, at INFN's average pace of trading.