Paper sold 24,300 UPS May20 100 puts & bought 24,300 UPS Jun 100 puts, net paying .93.
United Parcel Service Inc., trading 101.82 (down .63) with an IV30 of 16.53 and an HV10 of 12.80, saw a large put calendar trade.? The stock has an ADV of 13,500 and open interest of 347,000 contracts and did about 4X its ADV in one calendar spread.? The customer sold 24300 of the May20 100 puts at .55 and bought 24,300 of the Jun 100 puts for 1.48, net paying .93 for the May-June 100 calendar put spread.
While OI is high on the May 100 puts, this does not appear to be a roll but more a straight play on UPS slowly moving toward 100 and IV increasing.? The trade is hoping UPS drops about 1% in the next 8 days.? This also could be a hedge against some sort of stock position and or change in volatility in UPS.
This trade should be considered bearish UPS and bullish volaitlty.