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Large Put Calendar Spread Trades in Velocity Financial, Inc. (Symbol VEL)

Large Put Calendar Spread Trades in Velocity Financial, Inc. (Symbol VEL)

OptionWatch:

Posted June 2, 2025 at 12:15 pm

Jeff Praissman
Interactive Brokers

This morning the Velocity Financial, Inc. (Symbol VEL) June 20th ’25 / August 15th  ’25 17.5 puts spread traded on a ratio of 4,000 June puts and 3,500 August puts. The investor sold the June Puts at $1.15 most likely closing out a position since the open interest was 4,100 contracts in that strike. They rolled their position to 3,500 August puts paying $1.45. The overall cost of rolling the position was $47,500.

Rolling a position is a common practice and this investor may be rolling it offset a large, long stock position and hedge against a downside move. It is a little surprising, however, that they did not choose a lower put strike that is currently out of the money.  The estimated date of earnings between July 30th – August 4th may be playing a part in their choice to open a position in August as well.

VEL is currently trading at $16.62. Vel has a 52-week high of $20.80 and a 52-week low of $16.19.

VEL is currently trading at $16.62. Vel has a 52-week high of $20.80 and a 52-week low of $16.19.

Source: IBKR TWS. Past performance is not indicative of future results

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