Paper bought 9000 ECA Aug 7 puts & sold 9000 Aug 6 puts for a net debit of .21.
Encana Corp., trading 7.82 with an IV30 of 60.16 and an HV10 of 70.47, saw a put spread trade for size.? The stock, with an ADV of 4750 and an OI of 84,000, saw a customer buy 9000 of the August 7 puts paying .35 and sell 9000 of the August 6 puts at .14.? Net the customer bought the Aug 6/7 put spread paying .21.
ECA has earnings on July 21 after standard expiration, thus this is likely a hedge around earnings for a long stock holder.? Alternatively this could be a customer that simply thinks ECA is going to have a rough earrings cycle and wants to play a drop in the stock.? Regardless, the trader is concerned about the near term outlook for ECA.
This trade is bearish ECA and bullish ECA vol.