Option Focus | SK hynix Draws $4.15 Million Synthetic Short as Institutions Bet Against a Rally, While Additional Call Selling Reinforces Bearish Sentiment

Option Witch08-11 07:00

SK hynix ended the session at 135.29 USD, down 1.90%.

The session was punctuated by a massive $4.15 million synthetic short position, dominating a flow landscape where bearish bets totaled $15.52 million against a mere $0.44 million in bullish activity. The extraordinary imbalance signals aggressive institutional conviction that the stock’s upside is capped, reinforcing a decisively bearish tone.

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Options Indicators

SKHY’s implied volatility is 83.94%, but its IV percentile is just 5.00%, 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 0.56, this suggests implied volatility is running below realized volatility, so options appear relatively cheap and overall volatility pricing is on the low side rather than expensive. The Call/Put volume ratio is 0.76.

Large Trades

A bearish synthetic short position with a net debit of $4.15 million was the standout large trade, built by buying 5,000 Jan. 15, 2027 $120 puts and selling 5,000 Jan. 15, 2027 $220 calls. Both strikes were out of the money versus the $135.29 reference stock price, and the structure reflects a synthetic short created through a long put plus short call combination. Because this trade was executed for a net debit, it points to a directional bearish stance rather than premium collection, giving the trader leveraged downside exposure over a longer-dated horizon while also taking on upside risk through the short call leg.

A bearish call sale worth $0.74 million was the other displayed large trade, involving the sale of 4,500 Aug. 21, 2026 $160 calls. The strike was out of the money relative to the current stock reference, and the trade suggests the seller is positioning for the shares to remain below $160 into expiration, consistent with a cautious-to-bearish outlook or a willingness to collect premium against limited upside expectations. Overall sentiment across all large trades was clearly bearish, with total bullish flow at $0.44 million versus $15.52 million in bearish flow, leaving a net difference of $15.08 million to the bearish side. The conclusion is decisively bearish, as the flow was dominated by a large synthetic short and reinforced by additional call selling, while bullish activity was comparatively negligible.

Strategy Reference

For a lower-margin alternative to outright short calls, a bear put spread using the Jan. 17, 2025 $140/$130 strikes could define risk while aligning with the prevailing bearish flow.

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