Usingthe binomialfittingmethod in MATLAB to program numericalcalculationprogram, theanalyticalformulationsbetweenfeedspeed, width-radius ratioandwidthspreadratio were deduced.
Assuming this trade was a ratiospread, the trader might have sold 58, 000 October 4 puts, thus creating a two-to-one ratio with the purchased 29, 000 October 5 puts.
It looks like the trader is positioning for significant, albeit limited, downside movement in the price of the underlying by employing a ratio put spread.
The largest transaction in Safeway options today was the one-by-two ratio put spread initiated in the March expiry in the first half of the trading session.