10,000 BYD Jan 2017 17 puts traded for 2.00
Boyd Gaming, which is currently trading 20.12 up .42 with an IV 30 and an HV of 30, is seeing decent put action today.? In a name that normally trades 933 contracts, with an open interest of 39,000, over 11,500 puts have traded.
A trader, tied to stock bought 10,000 of the Jan 2017 17 puts for 2.00.? In what appears to be a delta neutral trade.? Thus the trader bought 27 shares of stock for every contract the trader bought.? This play allows the trader some upside but is primarily a play on the underlying dropping.? More likely this is a trader that already owns the stock and is converting an existing position of some type into a synthetic call or a ?married put.?
This trade should be considered mildly bearish and bullish volatility.