Paper sold 25,000 UNG July 6 puts with the largest block tied up to stock.
United States Natural Gas Fund, trading 6.54 (up .04) with an IV30 of 41.22 and HV10 of 29.17 is seeing heavy put selling today in July. ?The ETF, with an ADV of 19400 and an OI of 410,000 contracts, is seeing heavy selling of the July 6 puts.? Traders have sold the July 6 puts over 25,000 times with the largest block being over 19,000 tied up to stock.? Additionally there has been heavy selling in these puts outright.? All of the sales have been at a price of .21.
This is a customer or customers that clearly do not think there is going to be much downside action in UNG.? This is an income trade to collect the .21 contract in UNG against the 6 dollar strike price (about a 3% yield).? IF the stock does drop the trader did some stock, although the trader clearly thinks the underlying is likely to sit.
This trade is slightly bullish the underlying and aggressively bearish volatile in UNG