Options activity in Main Street Capital Corporation surged on Tuesday, with puts accounting for 98% of total volume as traders positioned ahead of the September 18 expiry.
A single put spread dominated trading, with 7,400 contracts exchanging hands in the $54.40/$59.40 September expiry. The spread saw equal volume at each strike, with 3,700 contracts bought at both the lower and higher levels. Prior to the surge, open interest stood at 385 contracts for the $54.40 strike and 803 for the $59.40 strike.
The broader options market reflected heightened bearish sentiment, with nearly all 7,570 contracts traded on the day representing puts. Main Street Capital’s shares were last quoted at $58.58, down 0.76% on the session.
Volatility metrics shifted alongside the options activity. Three-month implied volatility declined by 2.63 points to 19.55%, while the 3-month 90/110 skew increased by 3.52 points to 9.57, indicating elevated demand for downside protection relative to upside calls.
The company’s 12-month total return stands at -0.8%, with a trailing 90-day volatility of 20.8%. Main Street Capital maintains a dividend yield of 7.6% based on its current share price.
