Huge Put Volume on Genworth (GNW)

Shares of Genworth Financial Inc. GNW are higher on the session by 2.01%, currently trading $15.22. The stock has been drifting lower over the past four weeks, but has held the 200-day moving average. There has been some interesting trading in the puts today. Two very large trades have occurred. First, the June $15 put traded for $0.80 9,500 times just as the September $10 put was sold on the bid 19,000 times for $0.46. A half hour after that, the June $15 put was sold on the bid 10,000 times for $0.74 and the September $10 put was sold on the bid 20,000 times for $0.43. Given that these trades were all linked as spreads, it appears that the trader is selling Sept puts to get long June puts, saying that the stock could fall further in the near term, but not below $10.00. This would enable the trader to have highly levered profits in the near term. Open interest on both strikes shows that all traders were opening positions. Genworth Financial, Inc. is a financial security company dedicated to providing insurance, wealth management, investment and financial solutions to more than 15 million customers, with a presence in more than 25 countries.