A large volatility strategy is looking for a big move higher or lower by Puerto Rico-based bank Popular by early next year.
optionMONSTER’s Depth Charge system shows that a trader bought 7,500 January 32 puts for the ask price of $1.80 on a wide bid/ask spread. This is a new position as there was no previous open interest in the strike, and the volume was more than 10 times the name’s total daily average.
Just afterward, 247,500 shares of BPOP were bought in one print for $34.3515. The combination of stock and options creates an overall delta-neutral position that is looking for a sharp move up or down and/or for volatility to be greater than that implied by the option premium.
— Option Monster