Through an intermarket sweep paper bought 18,478 JCP Sep 9.5 puts outright for .24.
J C Penney Company Inc., trading 9.56 with an IV30 39% and an HV10 of 21.05, is seeing a large put trade.? The retailer has an ADV of 24,000 and an OI of 696,000 contracts.? Today through an intermarket sweep a customer bought 18,478 of the September 9.5 puts out right for .24. Based on open interest of just over 20,000 contracts this put sweep appears to be opening and does not have any stock tied to it.
This is a customer that thinks JCP is going to have a rough few weeks.??? He or she is looking for a move lower of 5% or greater in the stock in order to really begin to profit as these puts have a breakeven of 9.26.? This COULD be a near term hedge but appears to be more of a bearish delta capture.
This trade is bearish JCP and aggressively bullish volatility.