Paper bought the PII Oct 90/80 put spread for 2.20.?? Based on the open interest, this is an opening trade.
Polaris Industries Inc., trading 97.22 (up 2.38) with an IV30 of 31.18 and an HV10 of 30.86, saw a large put spread trade in October.? The stock, with an ADV of 1478 and OI of 35,600 contracts, saw a customer buy 5921 of the PII Oct 90 puts for 3.23. Against it, the trader sold 5921 of the October 80 puts at 1.03.? Net, the customer bought the Oct 90/80 put spread for 2.20.?? Based on the open interest, this is an opening trade.
This trade could be a play on PII dropping back below 90, but is more likely a hedge against long stock.? The trader is paying 2.20 to protect his or her stock position below 90 and down to $80.? Thus, the trader thinks a 10% drop is in the card, but a 20% drop is less likely.
This trade is bearish the underlying and bulling volatility.