12,000 YHOO Jan 33 puts were purchased for .55 out right,? untied to stock.?
Yahoo Inc. is trading at 34.34 today, up .15. YHOO has an IV30 of 31.36, an HV10 of 38.20, ADV of 53,700 contracts and an OI of 1.1 million. YHOO saw a large put purchase today in which a customer bought 12,000 of the Jan 2016 33 puts for .55 out right,? untied to stock.? Current OI on the 33 strike is about 47,000.
Our best guess is that this is an opening trade, although it is entirely possible this is a closing trade from a large group of put trades from early November.? Regardless the trader clearly believes that holding the Jan 33 puts for .55 vs either cash or short them is not a good play.?
This trade should be considered bearish YHOO in the near term and bullish YHOO volatility.