Paper bought a total of 8,000 OAS Feb 6 puts for .80 and .87, and 14,000 of the Feb 8 calls for .50 in what was a ratio strangle purchase.?
Oasis Petroleum, OAS, was trading at 5.86, down .31, with an IV30 of 126.53 and a 10 day HV of 101.35, saw a large ratio strangle buyer.? The stock, with an ADV of 5700 contracts and open interest of 120k, contract saw a trader buy a total of 8,000 OAS Feb 6 puts for .80 and .87, and 14,000 of the Feb 8 calls for .50 in what was a ratio strangle purchase.? In addition a large number of 6 puts were swept around this trade bringing the day total to over 10,000 Feb 6 puts.
This trade is likely related to stock somewhere.? It is likely a trader that is long the stock putting on a hedge to remove much of his or her risk of the stock dropping.? At the same time he or she wants to lever up the trader?s long position if the stock compelled takes off.? The trader is clearly looking for a move he or she would prefer higher (likely) but wants to be in good shape in the even oil has more problems.
This trade should be considered aggressively long volatility and neutral the stock.