11,816 PII Jan 90 puts traded for 1.55 against 11778 PII Jan 85 puts for .70.
Polaris Industries Inc. (PII) was trading at 97.41 earlier today, down .91. PII has an ADV of just over 1000 contracts a day and open interest of 20,746. The IV in this name is 35.10 and the 10 day HV is about 25%.? Today, PII saw a massive put spread trade on a slight ratio.? A trader bought 11,816 of the Jan 90 puts paying 1.55 and against it sold the Jan 85 puts 11778 times at .70 untied.? Net the customer bought the 5 point vertical put spread that is 7.5 bucks out of the money with about 37 days to expire for .85.?
This trader is making a bet that PII will drop below 89.15 by the middle of January.? Quite the aggressive bet, there does not appear to be any offsetting stock and thus this appears to be a straight bet.
This trade should be considered aggressively bearish the underlying and somewhat bullish volatility.