At the time of this writing, SM was up 1.56 to 79.75. Earlier today a trader executed a ratio put time stupid.? A ?stupid? spread is when a trader buys both strikes of a spread.? The trader bought 15,000 of the Sep 75 puts along with 10,000 of the Aug 80 puts.? While there is already open interest of 10,000 on the Aug 80 puts, initiated on July 30th, it is hard to determine if the trade is an open or a close.? The 10,000 open interest previous occurred at on Jul 30th
There is a chance this was done with some sort of stock position (as stupids usually are).? A put stupid, when merged with stock ends up looking like a strangle.? This trade is likely a hedged bullish trade rather than a bear trade believe it or not.
It should be considered bullish the volatility in SM energy corp.