Paper sold 20,000 VALE Jan 2017 7 puts & bought 20,000 Jan 2018 7 puts in what was likely a close and roll.
Vale SA (adr), trading 4.21 with an IV30 of 73% and an HV10 of 88.5, saw a large ITM put roll trade.? The stock, with an ADV of 14,300 and OI of 905,000 contracts, saw a customer sell 20,000 of the Jan 2017 7 puts at 2.96 then the customer bought 20,000 of the Jan 2018 7 puts for 3.26 in what was likely a close and roll. Given the open interest there may be more where this came from.
This appears to be a customer building a large long put position (he or she has done this trade before).? It is likely related to some stock position the trader has on as on its own this trade is deeply short delta.? The customer is likely long and looking to continue to hold upside above 7 if the stock turns around.
The trade is bullish vol and likely bullish the underlying not bearish.