Huge Strangle Sold on Textron (TXT)

Shares of Textron Inc. TXT are lower on the session by 2.45%, currently trading at $18.87. The stock has been selling off as of late and is nearing historical support near $18.00. Options volume is exploding in the name, namely due to one transaction. The August $19 straddle was sold 7,812 times for $2.80 a short while ago. Volume exceeded open interest on both strikes, by far. Volume has since grown to 8,300 contracts on the straddle. This trade represents 14.8% of shares. The straddle has an implied volatility of 47.51% versus overall implied vol of 45% and historical vol of 46%. This trade represents someone getting short vol on the name, betting that it will continue to slide lower. Implied and Historical Volatility recently peaked at 65% and 78%, respectively. Textron Inc. is a multi-industry company with a global network of aircraft, defense, industrial and finance businesses to provide customers with products and services worldwide. It conducts its business through five operating segments: Cessna, Bell, Textron Systems and Industrial, which represents its manufacturing businesses, and Finance, which represents its finance business.