Odd and very big trading is hitting Procter & Gamble today.
More than 286,000 PG options have traded so far this morning, more than 10 times its daily average for the last month. optionMONSTER’s Depth Charge system first identified put buying that was well out of the money as a trader purchased 20,000 February 60 puts, 10,000 of them for $0.03 and another 10,000 for $0.02. The volume was 5 times the previous open interest at that strike, clearly showing that these are new positions.
The puts weren’t tied to any trading in PG shares identified by our systems. The delta of those options is less than 0.01, meaning that they will gain less than $0.01 for a $1 drop in PG shares. So this appears to be a hedging an existing position against an extreme drop.
— Option Monster