A customer sold the INVN Dec 13 puts at 1.30 & bought the INVN Mar 12 puts for 1.65.?
InvenSense Inc. (INVN) was trading earlier today at 11.81. INVN, which has an IV30 of 52.77, an HV10 of 51%, is seeing put action today.? The stock, which has an ADV of about 2,600 contracts and open interest of 151,000, is seeing puts trade across the board.? The largest trade was a put calendar off strike.
A customer sold the INVN Dec 13 puts at 1.30 & bought the INVN Mar 12 puts for 1.65.? Net the customer paid .35 to put on the put diagonal.? On the day this spread has traded 9400.? This trade should be considered bearish to neutral the stock and bullish volatility in INVN
This appears to be a customer that is actually trying to get long the stock and set up a hedge at the same time.? If one was to think about the synthetics the customer is buying the stock for 11.70 and the Mar 12 puts for 1.65.? If the stock rallies, the customer can keep the Dec credit and will still own the puts,? or more likely the customer will get put to and own the puts and stock for .35.