A large trader apparently sees limited downside potential in Dollar General.
optionMONSTER systems detected the purchase of 5,000 September 64 puts for the $1.25 and the sale of 10,000 September 62 puts for $0.50. The previous open interest was fewer than 25 contracts in each strike, showing that this is new positioning.
The trader spent $0.25 on this ratio spread, which is the maximum amount at risk if shares remain above $64. The maximum gain would be realized with DG at $62, but below that price the trader is at risk of having to buy shares.
— Option Monster