Paper bought 5,000 XOP April 26 puts & sold 10,000 XOP April 24 puts against it.
SPDR S&P Oil and Gas Explore & Production, trading 29.77 (up .45) with an IV30 of 48.41 and an HV10 of 67.17, saw a large put 1 by 2 trade.? The ETF, with an ADV of 72,000 and OI of 1,230,000 contracts, saw a customer buy 5,000 of the April 26 puts for .39 and against it sell 10,000 of the April 24 puts at .14.? Net the customer bought the 24/26 put 1 by 2 for .11.
This trade is likely a hedge trade where the customer is looking for protection down to around 24 dollars a share.? Below 24 the customer is willing to take more of XOP on and above 26; the customer simply loses .11 a contract.? It?s an inexpensive 30 day hedge.
This trade should be considered neutral the stock and bearish volatility.