Paper bought 16,000 PSEC Jan 2018 5/7 put spreads for 1.90 tied up to stock.
Prospect Capital Corp., trading 7.46 (up .04) with an IV30 of 36.50 and an HV10 of 16.38, is seeing a large bear put spread trade.? The stock, with an ADV of 4000 and an OI of 161k, saw a customer buy the Jan 2018 5/7 put spread.? The customer bought 16,000 of the Jan 2018 7 puts for 2.20 and sold 16000 of the Jan 2018 5 puts at .30.? Net, he or she bought the Jan 2018 5/7 put spread for 1.90 tied up to stock.
This is a long term hedge set up in PSEC.? Its likely he customer wants PSEC to go up and owns a lot of stock.? The customer is hoping PSEC moves higher, but wants to be protected in case PSEC goes much lower form here.
The trade should be considered neutral the stock and bullish volatility.