Paper bought 3,000 FOLD April 6 puts & sold 3,000 FOLD April 9 calls for a net .20 debit.
Amicus Therapeutics Inc., trading 7.60 with an IV30 of 156.41 and an HV10 of 83.01, saw a customer trade a collar today.? The stock, with an ADV of 1600 and an OI of 44,000, had a customer buy 3,000 of the April 6 puts for .70 and sell 3,000 of the April 9 calls at .50.? Net the customer bought the April 6/9 collar for a .20 debit.
This trade is absolutely a hedge with the investor willing to give up gains above $9/share, but looking for protection from losses below $5.80 /share in this biotech name.?
This trade should be considered bearish the underlying and neutral volatility.