A large trade is positioning for a potential 30 percent drop in the S&P 500.
optionMONSTER’s Depth Charge system shows that a trader bought 5,000 November 1175 puts in a single print for $0.35. This is clearly a new position, as open interest in the strike was just 50 contracts before the trade appeared.
As an index, the SPX does not have a single underlying but represents the 500 companies in the index. This could be a protection for a basket of companies in the index, but most hedgers do not use options that are this far out of the money.
— Option Monster