SK hynix closed at USD 175.63, down 7.60%.
Option flow showed a distinctly defensive tone as a $6.92 million far-out-of-the-money call sale and a $1.70 million near-the-money put purchase dominated activity. The combination signaled limited conviction in sustained upside and a preference for either capping rally potential or positioning for downside, with the large trades collectively pointing toward a bearish-to-neutral institutional stance.
>>>Start OPTIONS trading & earn up to SGD 200 in rewards!
Options Indicators
SKHY’s implied volatility is 62.60%, while its IV percentile is just 6.82%, which indicates that although the absolute IV level appears high, it is low relative to its own recent historical range and options are currently cheaply priced rather than expensive. With an IV/HV ratio of 0.95, implied volatility is slightly below realized volatility, suggesting option pricing is fairly restrained versus the stock’s actual movement.
The Call/Put volume ratio is 1.17.
Large Trades
A CALL sale worth $6.92 million was the standout large trade, with 2,000 contracts sold at the 250.0 strike expiring on 2027-12-17. With SKHY referenced at 175.63, this call was clearly out of the money, making it a bearish-to-neutral income-style position rather than an outright upside chase. Selling such far-out-of-the-money calls typically reflects a view that the stock is unlikely to rally aggressively toward that strike by expiration, while also allowing the trader to collect premium upfront and cap upside participation at a distant level.
A PUT purchase worth $1.70 million was the other major block, consisting of 1,500 contracts bought at the 175.0 strike expiring on 2026-10-16. With the stock reference at 175.63, the strike sat just out of the money, so this trade looks like a bearish directional bet or downside hedge positioned close to the current share price. Buying puts near the money usually signals a desire for meaningful downside exposure, suggesting the trader was preparing for weakness rather than simply reaching for cheap tail-risk protection.
Overall, the large-trade flow points to a clearly bearish institutional tone in SKHY. The combination of aggressive call overwriting at a distant upside strike and a sizable near-the-money put purchase indicates limited confidence in sustained upside and a preference for either harvesting premium against a capped rally scenario or protecting against, and potentially profiting from, downside pressure. Taken together, the block activity suggests market participants were leaning defensively and positioning for softer price action ahead.
Strategy Reference
For a low assignment probability, a seller could consider the 210.0 strike call expiring in 2027-12-17, while a bear put spread using the 175.0/150.0 strikes may suit those seeking defined downside exposure without posting excessive margin.