Option Focus | SK hynix Sees $2 Million OTM Put Sale as IV Plunges to 5th Percentile, Signaling Bullish Confidence Into 2026

Option Witch08-06

SK hynix closed at USD 151.03, down 2.17%.

Despite the daily dip, a massive $2.03 million put sale in the November 2026 $120.00 strike dominated the options flow, signaling a strong bullish conviction. This out-of-the-money trade, combined with the stock's implied volatility collapsing to its 5th percentile, suggests that sophisticated investors see limited downside risk and are actively collecting premium with a long-term constructive outlook.

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Options Indicators

SKHY’s implied volatility is 107.72%, but its IV percentile is only 5.88%, which indicates that despite the high absolute IV level, current option pricing sits near the low end of its own historical range. Combined with an IV/HV ratio of 0.67, this suggests implied volatility is running below realized volatility, and overall options appear cheaply priced with volatility on the low side relative to the stock’s recent behavior. The Call/Put volume ratio is 0.55.

Large Trades

A PUT sale worth $2.03 million stood out as the day’s key large trade, with 1,300 contracts sold on the November 20, 2026 $120.00 put. With SKHY referenced at $151.03, the strike sits out of the money, making this a moderately bullish position that suggests the seller is comfortable taking in premium while betting the shares remain above $120.00 through expiration. As a single-leg short put, the trade reflects either income generation or a willingness to accumulate the stock at a lower effective entry level if assigned, with the out-of-the-money structure indicating confidence that downside risk will stay contained.

Overall sentiment in SKHY’s large-trade flow was clearly bullish. The activity was entirely skewed toward bullish positioning, and the dominant trade was an out-of-the-money put sale, a structure typically associated with premium collection, constructive downside tolerance, and confidence that the stock can hold above a lower support area into 2026. Taken together, the large-trade tape points to investors expressing a favorable outlook rather than preparing for meaningful near-term weakness.

Strategy Reference

For traders seeking a low assignment probability, selling the December 2026 $100.00 put, which is significantly further out-of-the-money, can offer a more conservative premium collection approach. Alternatively, if margin requirements are a concern, a bull put spread by purchasing the $100.00 put against the $120.00 short put leg can define risk while still capitalizing on the bullish thesis.

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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