Paper sold 30,000 AKS Jan20 2017 2 puts at .84 & bought 30,000 of the Jan19 2018 puts for 1.18.
AK Steel Holding Corp., trading 2.04 (down .04) with an IV30 of 109% and an HV10 of 66%, saw a long-term calendar spread trade.? The stock with an OI of 342,000 and an ADV of 5200 contracts saw a trader buy a 30,000 lot long term calendar spread.? A trader sold 30,000 of the Jan20 2017 2 puts at .84 and then bought 30,000 of the Jan19 2018 puts for 1.18.? Net the trader bought the Jan2017-Jan2018 2 put spread for .34
This trader is making a bet that AK steel is not going to be going a lot of places between now and the end of 2017.? It?s also could be a less vanilla hedge against a long position meant to product theta while having some Vega exposure to hedge the position off.? Both way the trader does not like AKS between now and next year.
This trade should be considered neutral the stock and near term bearish volatility.