Paper bought 25,000 VZ April 52.5 puts & sold 50,000 VZ April 49 puts for a net debit of .23.5.?
Verizon Communications Inc., trading 54.49 (up 1.11) with an IV 30 of 19.15 and an HV 10 of 10.78, saw a massive 1-by-2put spread trade.? The communications giant has an ADV of 29,000 and open interest of 1.13 million. Today it saw a customer buy 25,000 of the April 52.5 puts for 1.65.5 and sell 50,000 ?of the April 49 puts at .71.? This is a massive put 1 by 2 for a net debit of .23.5.?
This is likely a bearish hedge set up to protect a long position down to 45.735 which would be about a 20% drop in the stock price.? Below 45.73 the trader appears willing to get long more VZ.
This trade is bearish vol and mildly bearish VZ.