Paper bought 75,000 GE Jan 30 puts & sold 75,000 Jan 25 puts, tied up to stock.??
General Electric Company, trading 30.32 with an IV30 of 14.80 and an HV10 8.87, saw a large put spread trade.? The stock, which has an ADV of 76,000 contracts and OI of 2,425,000, saw 75,000 Jan put spreads go up ATM.? The customer bought 75,000 of the Jan 30 puts paying 1.82 and sold 75,000 of the Jan 25 puts at .54 tied up to stock.?? Based on open interest, this trade is opening or is a hedging being rolled higher.
The customer, in buying the stock and the options, is likely making sure that his or her delta exposure does not change as the underlying.? But, the customer wants to maintain some sort of hedge on in GE as such that if the underlying drops he or she will not get taken to the cleaners.
This trade should be considered mildly bearish GE and bullish GE volatility.