TransCanada Corp. (TRP) is an Oil and Gas infrastructure company. It is currently trading at 48.48, with an IV or 15.78. ?The low vol stock that ?trades by appointment? saw a put seller sell 2,500 of the August 45 puts at a level of 1.08 a contract.? Selling an IV of 16.25 slightly above its long term IV average of 15.
The trader is betting that TRP will stay above 43.92 between now and August expiration.? The trader could be using this sale as a way to collect premium, and possibly buy the stock at a discounted level if the stock happens to take a brief dip below 44, a level it has only touched on a few occasions in the last six months.