If you see unusually high volume in puts what does it really mean ?

Is that what you were referring too in regards to reporting? That is the only thing I could find on IBKR.

 

You're welcome.

 

Do you a have a link to see the specs on the OPRA's site?
Thanks in advance.

 

You should have that conversation with your broker or query the poster's source. It's, to the best of my knowledge, sourced via the MyOCC site and far from free. DM the poster.

 

Someone is hedging of someone is betting big directionally.

 

Good noticing. But these kind of situations need to be taken with a grain of salt.

I mean sure, when you pull up the whole options chain for a certain maturity, and you don't see any kind of unusual bearish activity, nothing that raises any alarms, right?

And then you notice, that for a certain strike, there's like 100x above average puts are laid down.

Sure, it can very well be an indication of bearish sentiment. But that does not have to be the case.

Another things that it could be:

1) Beta-hedging or Delta-hedging. Some type of advanced and sorta weird strategies done by hedge funds and family offices require advanced hedging strategies. Some trader might have pulled up a lot of beta and might be trying to offset it by betting against a name that has a 180-degree inverse beta to their portfolio. Or might be a that the trader is running an options book and has a way positive/or negative detla. It even can be the dealer or market maker's desk trying to hedge out their delta

2) Flat out market manipulation: Well, that is quite unlikely, but, you know the drill. Not gonna give out so many details here.Could be.

3) Strategy: It very well could be that you are not seeing the big picture, because if you got an alarming read on the put options along the chain, it is possible that they might have skin in the game on the call side too. They might have put on a straddle or strangle, a delta-neutral option strategy playing for the both sides. So if you see 5000 puts, and that is quite unnatural, but there is also a 45000 calls for that name, well.. Than it sure can be just some trader putting on a strategy, along with the market.

 

I find that sometimes when these conditions precede earnings releases or other similar news, they tend to be more meaningful.