Paper bought 19,647 MX Sep 7.5 puts & sold 19,647 Sep 5 puts for a net debit of .80.
Magnachip Semiconductor Company, trading 7.58 with an IV 30 of 73.06 and an HV10 of 83%, saw a massive September put spread trade.? The stock with an ADV of 157 and OI of 6665 contracts saw a customer buy 19,647 of the Sep 7.5 puts for 1.00.? Against it the customer sold 19647 of the Sep 5 puts at .20, net the customer bought the 2.5 point bear put spread for .80.
This could be a spread set up against a long stock position where the customer is protecting against a large stock position.? The customer also could simply be making a massive bet on MX dropping, which is less likely.? Regardless, the trader is extremely nervous about the near term on this opening trade.
This trade should be considered aggressively bearish MX and bullish MX volatility.