Paypal Holdings Inc, currently trading at $37.20 (down $2.92) is seeing lots of put trading today.
- The biggest trade came in the August expiration month in the form of a ratio put spread tied to stock.
- A customer sold 9465 of the Aug 37 puts for $1.00 and against it the customer bought 9645 of the Aug 34 puts for $.22 and 9118 of the Aug 34 puts for $.23.
- Tied up to stock the trader executed a Aug 34/37 put back spread for a credit of approximately $.55 per spread.
- Total volume may exceed 10k by 20k on the day.
- This is likely a customer closing a huge winner based on the trade and open interest.
- The customer was probably long this 1 by 2 and, with the stock down and volatility down, the customer is taking his or her chips off the table.
- PYPL has an IV30 of 25.39 (down 12.30) with an HV10 of 23.08.
- This trade is somewhat bullish the underlying and bullish on volatility.