A large put spread is positioning for a potential drop in Western Digital even as shares gain today.
A trader bought 4,400 June 80 puts for $1.70 and sold the same number of the June 75 puts for the bid price of $0.57, according to optionMONSTER’s Depth Charge tracking system. The volume was more than 10 times the previous open interest in each strike, so this is new positioning.
The trader spent $1.13 to open this vertical spread, which is the maximum potential loss. The maximum potential gain is $3.87 if WDC is below $75 at expiration in mid-June.
— Option Monster