Paper bought 3,000 HP Aug 60 puts & sold 6,000 HP Aug 50 puts paying a net price of .90 per 1-by-2.
Helmerich & Payne Inc., trading 66.05 (up .40) with an IV30 of 38.35% up 1.32% and an HV10 of 33.75, saw a bear 1-by-2 trade.? The stock has an ADV of 2200 and an OI of 43,000.? A customer bought 3,000 of the August 60 puts paying 1.80 and sold 6,000 of the Aug 50 puts at .45 paying a net price of .90 per 1 by 2.
This is likely a hedge trade with the customer looking for protection if the stock dips below 60, but not having a fear that the stock might dip below 50.? Below 40.90 the customer would actually lose money on his or her hedge.? With a price of just .90 the customer is receiving a hedge that covers the stock down more than 30% for just .90, which is inexpensive.? It also points toward a step skew in HP.
The spread should be considered mildly bearish the stock and bearish volatility.