HYG Long Put — 2026-08-21

HYG (iShares iBoxx $ High Yield Corporate Bond ETF) shows bearish unusual options activity: $1071K of buyer-initiated unusual put flow (100% put-dominant) detected across near-term expirations, with a peak vol/OI ratio of 0.3x on the 80 put. IV rank is 25 (low) — cheap enough to buy the naked long put outright for full convexity. Buy the $79.5 put expiring 2026-08-21 (30 DTE) at mid $0.46 per share ($47 per contract). Breakeven at $79.03; net delta 0.48.

Underlying: HYG @ ~$79.67 | 2026-08-21 (30 DTE) | Net debit (entry): ~$47 per contract. Use limit orders at the mid or slightly worse.

MAX LOSS: Limited to the premium paid ($47 per contract). This is a defined-risk debit trade. | IV RISK: IV rank is 25 — reasonable for buying options. | TIMING: 30 DTE — unusual flow is a near-term signal; act promptly or the setup may stale. Close or take profit before expiration week to avoid gamma risk. | SECTOR: HYG is in Other — avoid concentration with other open Other positions. | EXECUTION: Use limit orders at mid or slightly worse. Verify the bid-ask before sending; do not chase with market orders. | EVENTS: Check for upcoming earnings, FDA decisions, or macro prints within the trade window that could cause outsized gap risk.