Shares of TripAdvisor (TRIP) are trading lower on the session by 3.66%, at $29.45. The stock has been trending lower for the better part of four months, today pushing to a new low.
With shares of TRIP under pressure today, put volume is jumping to 15.6x normal volume with 26,594 contracts traded. The heaviest action is coming in November, where the $30.00 strike was sold 5,202 times, near the bid, for $2.30 just as the Nov $27.00 put was purchased 10,404 times, above the offer, for $1.20.
Given the current open interest on both strikes, 12,457 and 6 contracts respectively, there could be one of two things happening here. This can be an exit of an existing long put position on the $30 strike with the trader re-upping his or her short exposure on the $27 strike, or it can be a fresh ratio put spread, where the trader is selling at-the-money volatility to buy double the amount of out-of-the-money vol.
In either case, there is a short play on the table; the latter would be extremely bearish for TRIP.
30-day implied volatility is up 11.3% on the session to 71.31%; 30-day historical vol is trading at 26.44%.
TripAdvisor, Inc. is an online travel research company, enabling users to plan and have a trip. TripAdvisor features reviews and advice on hotels, resorts, flights, vacation rentals, vacation packages and travel guides.?