In what was likely tied to stock, a trader bought just under 34,000 ODP April 5 puts paying .925.
Office Depot Inc., trading 5.01, up 5 cents, with an IV30 of 87% and an HV10 of 39.44, saw bearish put action today. The company with an ADV of 9775 and OI of 260k saw an April put buyer.? In what was likely tied to stock a trader bought just under 34,000 of the April 5 puts paying .925 tied to stock.
This trade was likely done as a way for the trader to set up a hedge against long stock position.? It also could be a play on ODP IV.? The stock has a corporate action with Office Max and this could be a play on something coming to head between now and April
Trade should be considered neutral the underlying and bullish volatility.