Paper bought the KMX Feb 50/45 put spread paying 1.63 5,000 times and a different trader bought the KMX April 45/37.5 put spread for 1.55 5,000 times.?
CarMax Inc., which was trading 48.17 earlier today, down 3.95, has an IV30 of 34.90% and an HV10 of 32.5, and saw multiple put spreads trade today.? The stock with ADV of 2500 contracts and an OI of 61,000 saw a trader buy the Feb 50/45 put spread paying 1.63 5000 times and a trader bought the April 45/37.5 put spread for 1.55 5,000 times.? Both trades were separate of one and other.
Both traders see continued downside in KMX but took the approach differently.? The Feb trader bought a lot of short delta in the immediate.? This could point toward a hedge of some kind against a long position and/or a pure delta play. The April trader is more likely taking a shot at continue KMX weakness of the next few months and sees long term down side.
Both trades should be considered bearish the underlying and bullish volatility.