Earlier today JD Dec 24.5 puts at .95.went up in two blocks.? Trade on the strike is over 16000 contracts with traders selling puts with abandon.?
Puts trade in JD- massive put crush
Shares of JD.Com Inc (JD) are up 1.08 to 24.99 today.? JD is in the middle of the 52 week range.
Paper traded 2382 JD Dec 24.5 puts at .95.?
- The ADV is 7940 contracts.
- The OI is 0 contracts.
The volume went up in two blocks.? Trade on the strike is over 16000 contracts with traders selling puts with abandon.? The Dec 22 puts are getting sold in size as well with IV collapsing in JD.? Bullish sentiment for sure.
- IV 30 is trading for 46.
- HV10 is trading for 63.
- IV 30 is trading under the HV 10.
JD.com, Inc. is a holding company. The Company is an online direct sales company. The Company, through its Website www.jd.com and mobile applications offers a selection of authentic products. The Company also offers online and in-person payment options and comprehensive customer services.
?Selling Calls against Stock in TIF
Earlier today, Tiffany & Co. was trading at 107.10 with an IV of 22.37.? Today a customer sold to open just over 15,000 of the Dec 20 110 calls collecting .60.? This is likely a trade done against a stock position and is meant to add income to the customers holding.? The customer is betting that TIF is going to continue to creep higher but not zoom higher.? If the stock rallies above 110.60 the customer would lose the upside movement of the stock
This trade should be considered mildly bullish the stock and bearish volatility in the immediate.? If the stock DOES rally to 110, the customer is going out produce a yield around 3% until Dec expiration.? At that point I would be looking for a roll back to Jan.? With the selling pressure on these calls they might be an attractive purchase as a part of the 110/115 call spread.? A trader might also consider selling the 105 puts.
Selling to Close in SWN
Two large trades went up in Southwestern energy today.? A customer sold (likely to close) the Dec 30 puts at 1.07.? These puts were bought for between .50-.80 a few weeks ago over a two day period and are thus a nice winner.? A few minutes later, tied to stock it appears the same customer bought the Jan 30 puts for between 1.50 and 1.60 a contract. With the stock tie this is less bearish than a naked play, but is likely still a play on SWN continuing its ugly slide lower.
This trade should be considered aggressively bullish volatility and bearish SWN over the next 40 days or so.
Right now IV in this name is through the roof high at 55.75,? thus while there is a good shot this customer is right one might want to either use a spread to reduce vega exposure or sell a spread out right rather than naked purchasing contracts.