Paper bought 20,000 KGC Aug 4.5 puts for .20 tied to stock.
Kinross Gold Corp., trading 4.86 (up .02) with an IV30 of 68% and an HV10 of 57.5%, has earnings tonight.? The stock, with an ADV of 12,200 contracts and 442,575 contracts of open interest, is seeing August put buyers ahead of earnings.? Traders bought tied to stock the August 4.5 puts for .20 20,000 times.? In addition the puts have traded through sweeps an additionally 10,600 times making the total for the day almost 31,000 contracts.
This appears to be customers setting up hedges and positions ahead of KGC earnings.? The customer appears to be worried that KGC could have a down quarter, or sell off on earnings as a result of the quarter.? At a minimum traders are looking for some movement otherwise they would not be setting up hedges in August.
This trade is bearish KGC and bullish KGC volatility.