Paper sold 13,500 MRO April 11 puts & bought 24,814 MRO April 9 puts for 1.15
Marathon Oil Corp., MRO, was trading 10.10, down .57 with an IV of 84.64 and an HV10 of 95.6%, saw a large put ratio trade.? The stock with an ADV of 12800 contracts and open interest of 330,000 saw a customer sell 13,500 of the April 11 puts vs buying 24,814 of the April 9 puts for 1.15 in what was an opening trade.? In addition a separate trade a customer sold 4250 of the April 10 puts and bought 7750 of the April 8 puts.? Both trades were for a small credit.
These trades are likely hedges against long positions in MRO with the customer protecting a large long position in the cheapest way he or she could against a long position.? While the customer is hoping MRO moves higher the trader is now hedged for a big move lower out to April.
The trade should be considered neutral the underlying and bullish volatility.