This trade should be considered mildly bearish the name but more importantly bearish volatility in ABV.?
Active Put Buyers in ABBV
ABBV trading 58.47 with an IV is 27.21 is seeing put activity today.? A trader bought 4800 April 2 (weekly) 57 puts paying 1.60.? Against this the trader sold 9600 of the 54.5 April 2 (weekly) puts at .80.? Net the trader did the April2 57/54.5 put 1 by 2 for even.? This trade is likely a long stock holder in ABBV that is looking for a hedge.? The trader believes that the underlying that the underlying could fall below 57 but is likely not to drop much below 10%.
This trade should be considered mildly bearish the name but more importantly bearish volatility in ABV.? This trade on its own represents about the average daily volume in ABBV options, thus this trade is dealing in some size.
Looking Way OTM in SINA
SINA trading 38.20 with an IV of 40.43 is seeing heavy volume in way OTM puts in 2017.? A trader or traders has bought over 6800 of the Jan 20 puts paying up to 1.20 (the offer).? This trader is making a serious bet against the long term outlook of the SINA.? Over the next two years, the trader seems to believe that underlying is going to see its value cut at least in half.? Additionally, there is heaving action in 2016 downside between the 27.5-20 strike.? This could be risk being laid off by those who sold.
This trade should be considered extremely bearish in the long term and bullish volatility in the long term.? Traders looking to piggy back could consider the Jan2016 (with about 11 months to expire) 37.5/30/22.5 put fly paying about 1.60.? While the duration would be shorter, the strike prices are close enough that any bearish action would be realized.
Looking for Low-Cost Bullish Upside in NVAX
NVAX trading 8.91 with an IV of 67.70 is seeing bullish call action in March.? Traders have, thus far, through the system bought 2489 March 9 calls paying up to .70.? This exceeds the average daily volume of about 2300 contracts a day.? The stock has earnings on March 10th (unconfirmed).?
This trade should be considered bullish the name and bullish volatility.? Traders are betting the stock is likely to make a run at 10 bucks a contract between now and March expiration.? Traders looking to piggy back could consider the April 10/11/12 butterfly for less than .10 which could give the trader plenty of bullish upside at little cost.