Paper bought 15,000 HYG Oct 84 puts trade for .52 through the auto execution system.?
iShares iBoxx High Yield Corp ETF, trading 86.56 (down .1) with an HV10 of 4.20, saw heavy put buying.? The ETF, with an ADV of 59,500 with an OI of 1.4 million contracts, saw 15,000 of the Oct 84 puts trade for .52 through the auto execution system.? There is some open interest in the strike but these are likely an opening trade as the OI built over the last few days.
This appears to be customers setting up trades as hedges against some pressure developing in the HYG product.? The customer is either protecting against the underlying dropping or expecting the underlying to drop 2-3% over the next few days.
This trade is aggressively bearish the underlying and bullish volatility.