Paper bought the KRC May 60/55 put spreads for .60 lifting the offer and hitting the bid on each leg.
Kilroy Realty Corp., trading 63.13 with an IV30 of 21.40 and an HV10 of 15%, saw a bear put spread.? The stock, with ADV of 417 and open interest of 5200 contracts, saw a customer buy 9,000 of the KRC May 60/65 put spread.? The customer bought 9,000 of the May 60 puts for .65 and in the ?love your broker? leg sold 9,000 of the May 55 puts at .05.? Net the customer bought the May 60/55 put spreads for .60 lifting the offer and hitting the bid on each leg.? Both legs were opens.
This customer is likely setting up a hedge against a long stock position or thinks the stock is going to be backing off coming out of earnings which are on April 27th.? The customer has protection down to 55 if this is a hedge, or if this is a bear spread the spread can potentially make 4.35.? If the customer had been willing to spend .05-.1 more the downside profit would have been unlimited.
This trade should be considered bearish the underlying and bullish vol.