Paper sold to close 7,000 INVN Jan 2017 5 puts & bought to open 11,000 of the Jan 2018 3 puts.
InvenSense Inc., trading 5.54 with an IV30 of 55.43 and an HV10 of 70%, is seeing heavy put action today.? The stock with an ADV of 1100 and OI of 54,000 saw a put roll trade.? A customer that was long the Jan 2017 5 puts sold 7,000 of the puts at .70 then took the proceeds and bought 11,000 of the Jan 2018 3 puts for .45 in a trade that amounts to essentially a wash for in terms of cash outlay (there is a small net debit).?
This customer appears to think there is more in store for INVN as the stock has had a terrible run since earnings in May.? The customer in taking off some near term delta exposure bought much more long term gamma and vega if the underlying keeps going.? This also could be a repositioning of a hedge.
This trade should be considered bearish INVN and Bullish INVN volatility.