Traders have sold both the PG May-June 82.5 and the PG May-June 85 put roll. ?
Cash-Secured Put Roll HTZ
Earlier today, Hertz Global was up 1.03 to 20.59 with and IV of 38.25. At that time, there was a large cash secured put rolled.? A trader that was short the May 21 puts covered the puts for .40 and then sold the June 21 puts at 1.10 putting on the short calendar (a roll) at a credit of .70.
This is likely a trader that like HTZ long term, but did not want to take delivery on the stock.? But rather wanted to receive a credit to potentially take deliver in June.? The trader though, will likely roll again in June if the underlying is still, around 20-21 a share.
This trade should be considered bullish the underlying and bearish IV and acts much like a June 21 covered call.
Multiple Put Rolls in PG
Procter and Gamble trading 80.95 with an IV of 10.70 is seeing multiple put rolls today.? Traders have sold both the May-June 82.5 and May-June 85 put roll.? The 82.5 roll was done for a credit of .76 and the 85 roll was done for event.
This appears to be a trader that is unwilling to accept a loss on a cash secured put.? PG has had a rough go it is likely that the trader sold puts in PG to collect income, but that they are now deeply in the money and he or she would rather not ?face the music? on these losing put sales.
The 82.5 roll is more understandable because at least the trader is receiving some credit.? The 85 roll is a love your broker trade that seems to only push off the loss.? These trades should be considered bearish volatility and hopeful that the underlying rallies.