![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhTZ4NgSw3C8j2hEdK7I03oH0ctv2IaT2pV_uv3-AYFNuWnwR52VaOcjJqVteAyQFt9DMLq9a_Dj6O6u6WNMBdyaDACSfPq16x2cUZZsJtQVbaZpescPQ92-s0XyZo0lBpo-jKiYNQ1O7k/s400/hsy_summary.gif)
Mike Bristow of Vtrader Group gave me the color on the large sale which is pushing IV30™ down hard.
The company has traded over 13,000 options on total daily average option volume of just 3,531. Puts have traded almost 3:1 to calls. The largest trade was 7,500 Sep 46 puts sold @ $0.50 (over 8,700 have traded in total) outright (no stock). The Stats Tab and Day's biggest trades snapshots are included (click either image to enlarge).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhW4OsG8jr6ydfTcIWcR9V7wNuU3RTxd4TY9773KgVe7UXQ2NnusD-g1mwvtn_BFpOkC5BW3SVHRlcMOgN7ApC-KspJjZBQdCypFM02YbUjUKhx27gdtH5aDWZv7DUG3PfmHA93UdND4KY/s400/hsy_stats.gif)
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht-jHWcOgzmPQAkR960IbVqSQB4s-4gpEIdTpEa40SUE4y0r3M0kox6OQmDc6DcrE5EEp6P7P0rOEuHmMpJ_-0bGSySCjMJcFEPuaMdt7JqgJV2Vqmx_trm9emsZA0-fLhZRyOwgBdD7o/s400/hsy_trades.gif)
The Options Tab (click to enlarge) illustrates that the puts are mostly opening (compare OI to trade size).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXfs2KEBdNdnWb3pMcPgTq1OjfxWk0_zTXOeZWU8Gr787m7R8iAP1fmsnw2aFNRkvPObH5R3m27AsdCH54ZIqoNxaPk31yUqYWmcvC-wGtvjZEogmKmLvZnkHGvzeKDnqvPCXd2RRtCBY/s400/hsy_options.gif)
Finally, the Charts Tab (6 months) is below (click to enlarge). The top portion is the stock price, the bottom is the vol (IV30™ - red vs HV20™ - blue). The yellow shaded area at the very bottom is the IV30™ vs. the HV20™ vol difference.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgWqat13cWemfztsZECGEzOxbTn0GX92lRd-a-1cJrMLpqEZp3ALPgwzYTFZzBjihMyLdVWpgzvdvO9TH7REfvmICPvG2ZglJOUX18MiZM8NYjtFqREHdqH-d2QK07Plqee45hxfkcweA4/s400/hsy_charts.gif)
Note how high the IV30™ has spiked past the HV20™. This trade sells 23 vol against an HV20™ of 14, HV10™ of 13 and longer term HV180™ of 21. We can also see that before today, IV30™ reached as high as 26.3, it's down a full 3+ points today.
I like selling this vol (note the dividend, fyi). I want to sell it twice and buy a put above it to keep some short deltas... I'm a bear, deal with it :-).
Trade to Analyze
Buy 1 HSY Sep 47 put for $0.79
Sell 2 HSY Sep 46 puts @ $0.46
Collect $0.13; naked short the downside below $45. For margin worries, I could buy the Sep 43 puts for $0.12.
Disclosure: I did the above trade without the 43 puts.
This is trade analysis, not a recommendation.
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