Paper bought to open 2,000 BIG Sep 52.5/47.5 put spreads tied to stock delta neutral
Big Lots Inc., trading 52.40 (down 2.90) with an IV30 of 52.07 and an HV10 of 27.60, is seeing heavy put action in September with the largest trade being a put spread.? The stock, with an ADV of 1170 and an OI of 19,000, saw a customer buy 2,000 of the Sep 52.50 puts for 2.60 and sell 2,000 of the Sep 47.5 puts at .85. Net, the customer paid 1.75 for the Sep 52.5/47.5 put spread this is an opening trade that was tied to stock delta neutral.? In addition, there has been active trading on the Sep 50 and 45 put as well, all buys.
BIG is under heavy pressure today ahead of earnings this week.? Traders appear to be setting up for BIG to drop when the company reports earnings.? All of these trades have a bearish bias and might be a hedge. The fact that they are set up in the earrings month appear to be traders bracing for further declines after today.
This trade is aggressively bearish big longs and bullish volatility in BIG.