Paper bought 10580 HYG July1 81 puts, 5000 July1 82 puts, 4000 July1 83 puts, & 4000 July1 83 puts.
iShares iBoxx $ High Yield Corporate Bond Fund, trading 83.72 (up .03) with an IV30 of 9.47 with an HV10 of 5.1, is seeing lots of July put action today.? With an ADV of 54000 and an OI of 1400000 volume is light overall but above average in puts.? The stock has seen a buyer of 10580 of the July 81 bought for .50 puts 5000 of the July 82 puts for .69 4000 of the July1 83 puts for .94? and 4,000 of the July 83 puts for 1.05.? All of the above were purchases with the July 1?s being the long set tied to stock.
This appears to be a customer or customer building a hedge in HYG in July against any type of movement that might come out of the Fed raising rates in June or potentially July both of which are showing decent odds of happening.
These purchases should be considered aggressively bearish HYG and bullish HYG volatility.