20,000 WFT Feb 10 puts traded at 1.50, and the proceeds were used to buy 30,000 WFT Feb 9 puts for 1.12.
Weatherford International PLC (WFT) was trading today at 9.30 with an IV30 of 80.4% vs an HV 20 of just 49.25%. There was a large put roll down in which a customer that was long the Feb 10 puts in the .95 range closed, rolled down and increased the size of his or her bet.? The customer sold 20,000 of the Feb 10 puts at 1.50, and then used the proceeds to buy 30,000 of the Feb 9 puts for 1.12.
This trade is essentially betting that WFT may have further to go, although this could be a customer increasing the size of his or her hedge.? That said based on how the roll down was executed its more likely this at a minimum a bearish play even if there is some stock involved in the position.
This trade should be considered aggressively bearish WFT and bullish WFT volatility.