Paper bought 22,500 RRC March 25 puts paying between 2.65 all the way up to 3.30 and sold?the 20 puts at .90.
Range Resources Corp., RRC, trading 26.40 up .40 with an IV30 of 89.55 and an HV10 of 122%, is seeing put spread action today.? The stock, with an ADV of 6800 contracts and open interest of 127,000 contracts, saw 52,000 puts trade today almost all in an opening put spread.? A trader bought, on the day, 22,500 of the RRC March 25 puts paying between 2.65 all the way up to 3.30 and then selling the 20 puts at .90 .? Net the top price paid for the spread was 2.20 and the cheapest traders paid was 1.70, with an average price being around 1.85 totally about 22,500.
This trade is either a hedge against a long position with the trader wanting protection down to 20 bucks.? Alternatively it could be a play on the RRC simply turning back around and dropping.
This trade should be considered bearish RRC and bullish RRC volatility.