Paper has bought over 15,000 HUN April 12 puts paying .20.?
Huntsman Corp, trading 12.92 with an IV30 of 58.6 (up 2.4 points) and an HV10 of 40.28, is seeing bearish flow.? The stock has an ADV of 3250 and OI of 111,000 and has seen this customer buy over 15,000 of the April 12 puts paying .20.? The stock has earnings AFTER April expiration so this appears to be more of a play on the stock moving ahead of earnings.
The customer is hoping HUN drops below 12 between now and April 15th with the breakeven being 11.80.? If the stock turns around the risk is only the .20 in premium per contract that was laid out.? This trade also could be a near term hedge, although based on the way it was executed and the duration it is more likely a directional play
This trade should be co9nsidered aggressively bearish HUN and bullish volatility.