There was a LARGE PFE put trade today when a customer bought 165,000 of the Jan 2017 28 puts paying 1.58.
Pfizer Inc. (PFE) is at 32.05, down .27, today. PFE has an IV30 of 19%, an HV10 of 12 an ADV of 70,000 contracts and open interest of 2 million. There was a LARGE put trade today when a customer bought 165,000 of the Jan2017 28 puts paying 1.58.
This appears to be a hedge against a large stock position.? The customer is likely long a lot of PFE stock and wants to hedge his or her position to make sure that PFE?s run over 30 bucks doesn?t turn around and cost the investor his or her fortune in PFE stock.
This trade should be considered neutral the stock and mildly bullish volatility.