Option Focus | SK hynix’s Largest Block Is a $420K Three-Leg Put-Selling Combo at $130, Signaling Bullish Premium Collection Despite 4% Drop

Option Witch
15 hours ago

SK hynix closed at USD 162.23, down 4.02 percent.

Despite the sharp single-day decline, the largest options block on SK hynix leaned decidedly bullish. A three-leg put-selling combination at the 130.0 strike collected a net credit of $420 thousand, signaling confidence that the stock can hold well above that level into late 2026. The flow was dominated by out-of-the-money put sales rather than defensive put buying, suggesting institutional traders treated the pullback as an opportunity to harvest premium instead of hedging aggressively.

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Options Indicators

SK hynix has an implied volatility of 57.74%, and with an IV percentile of just 7.81%, current volatility sits on the low side of its recent range, indicating that options are cheaply priced rather than expensive. The IV/HV ratio of 1.16 also suggests implied volatility is running modestly above historical volatility, meaning the options market is embedding somewhat higher forward-looking uncertainty, but not to an extreme degree.

The Call/Put volume ratio is 0.87.

Large Trades

A put spread-style premium collection trade with a net credit of $420 thousand was the largest displayed block, consisting of a three-leg put combination in the November 6, 2026 expiration, all at the 130.0 strike. Because the structure includes only sell puts, it is best viewed as a put-selling premium strategy rather than a synthetic position, and the size should be read from the provided net credit of $420 thousand. With SKHY referenced at 162.23, the 130.0 strike is out of the money, indicating the trader is expressing a moderately bullish-to-neutral view that the shares are likely to stay above that level into expiration, while seeking to collect premium rather than paying for downside protection.

Overall, the large-trade flow leans bullish. The dominant institutional activity was the sizable out-of-the-money put-selling combination, which signals willingness to take on downside assignment risk in exchange for premium income and typically reflects confidence in price stability or limited downside. That bullish premium-selling posture outweighed the smaller bearish purchase of the December 18 110.0 put, which looks more like a limited-cost downside hedge or a lower-conviction bearish tail-risk position than a primary directional statement. Taken together, the bulk-order figures suggest a constructive near-to-medium-term outlook with investors showing more comfort harvesting premium on downside strikes than aggressively positioning for a major drop.

Strategy Reference

For traders seeking a similar bullish premium-collection posture with a lower assignment probability, selling the November 6, 2026 130.0 put spread by also buying a lower-strike put can reduce margin requirements while still capturing net credit from the elevated implied volatility.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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