Unusual Options Activity Wednesday (1/17/24)

Welcome to this week’s Unusual Options Trade Alert!

Today, we’re looking at U.S. Foods Holding Corp (NYSE: USFD).

Here are the details of what I’m seeing:

Volatility Index: +28%

Sizzle Index: 30x above average

Options Flow Strike Prices: 15,000 contracts for 19 APR 2024 $45 PUT, 2,500 contracts for 19 JAN 2024 $40 PUT.

A potential trade idea for this would be the 19 APR 2024 $40 PUT. The $45 contracts have a ton more volume, but being at the money are far more vulnerable to beta. Unless someone thinks that this is the top for USFD, I’m not too sure why they would be buying it. Maybe they are covering a long position. Anyways, I think the $40 PUT would be a better trade idea, plus it has was higher open interest