AKS was trading at 6.25 when a customer bought 10,000 of the Jun 6 puts paying .70.? This was an opening trade as the open interest was only just over 1000 contracts and appears to be either an outright put purchase or some sort of tie up.?? IV is up on the strike today by about a 1 point as the customer was a buyer.?
My guess is that a customer was building a synthetic call position on AKS as the stock has had a nice recovery from the low 4?s.? This trade should be viewed as mildly bullish and aggressively bullish volatility. Traders looking to piggy back could consider the Jun 7/8 call spread as the upside skew of AKS is relatively flat and the risk reward of the 7/8 call spread is 4 to 1.