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Morning option trade alert: Ryland Group put buying
Related Symbols: RYL
At least one Ryland Group (NYSE: RYL) option investor seems to have taken a bearish stance on the homebuilder name and bought near-term puts, calling for a potential slide ahead of the company’s earnings release.
At 10:33 a.m. EST, more than 5,500 April 23 puts crossed the tape at the ask price of 68 cents, suggesting investors bought these options. These options are home to current open interest of 588 contracts, indicating the long put position was likely initiated to open. Investors who bought the April 23 puts are calling for the stock to closer lower than $22.32 at April options expiration in 36 trading days. These options have a 30-delta and are currently up 10 cents on the day, which is higher than the delta suggests.
Implied volatility of these puts is 39% compared to a 30-day historical volatility of 35%. This morning’s buying action has pushed implied volatility up on the day.
RYL did not announce any news this morning, and the company has not announced its next earnings release but the market expects the quarterly report sometime around April 28. It’s interesting that this bearish investor is calling for downside ahead of the company’s earnings announcement. RYL shares have dropped eight cents to $24.49 so far today.
For a visual of this trade heading into April options expiration, open a free virtual trading account to evaluate the risk/reward dynamics of this long put strategy. By opening this free account, you can also browse trading tools at
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