Given the delta and stock price, this customer is essentially putting on 1,000,000 short shares of BAC between now and May 13.
Bank of America Corp., trading 14.27 up .28 with an IV30 of 27 and an HV10 of 20.58, saw a customer buy near term puts.? A customer, bought 100,000 of the May13 15 puts paying .74, untied to stock.? Given the delta and stock price, this customer is essentially putting on 1,000,000 short shares of BAC between now and May 13.
The customer could be looking for a way to dump his or her stock this week but to partcipate in upside if the underlying continues to rally, OR this could be a back door way of establishing a short position.? It is clear though that be it a hedge or a short out right, this is an aggressive play as it expires this Friday
This trade should be considered aggressively bearish the underlying and aggressively bullish volatility.