To call these lotto tickets would be a fair description, what is shocking is the size of the trade relative to how far OTM these put are.?
Market Vectors Russia ETF is trading at 15.05 today. RSX has an IV30 of 35%, an IV10 of 30%, an ADV of 11,600 and open interest of 744,000. RSX saw a large OTM put buyer when a customer bought 100,000 of the Jan 2016 12 puts for .05 and .06, respectively, through auto execution on the ISE.
To call these lotto tickets would be a fair description, what is shocking is the size of the trade relative to how far OTM these put are.? The open interest is 77k so these are opening.
This trade should be considered aggressively bearish RSX and aggressively bullish in volatility.