Paper bought 2000 AIRM Apr 40 puts for 1.60 and 2000 for 1.65. ?Against it, ?they sold 4000 AIRM April 35 puts at .35.?
Air Methods Corp., trading 40.84 with an IV30 of 40.84 and an HV10 of 58.37, saw a put spread trade.? The stock with an ADV of 330 and an OI of 7900 saw more than its open interest trade in one trade.?? A customer bought 2000 of the April 40 puts for 1.60 and 2000 for 1.65 against this the customer sold 4000 of the April 35 puts at .35.? In total the customer paid 1.275 for 4000 of the April 35/40 put spreads.
This appears to be a customer that thinks is setting up a hedge or thinks AIRM is going to drop between now and April expiration.? The customer will make 3.62 if the stock drops to 35.00 at April expiration and has a breakeven of 38.325.? This is likely a hedge against a long position.
This trade is bearish the underlying and bullish volatility.