Archer Daniels (ADM) shares continue to slide post-earnings, and one bearish trader sees more downside potential for the grains Company. The trader traded the June $34/$32 ratio put spread for 2,500X5,000 contracts at $0.27 debit, looking for a fall to $32, and seeing limited upside despite the valuation. The trader's profit zone is from $30.27 to $33.73 (See Below), and with the trade also Vega Negative, the trader can close this trade for a profit if shares stay below $35 in coming weeks.
Put volume was 3X daily average.
Shares could see further downside as farm subsidies are argued in Government. The $32 level is a major support level, and shares recently lost $34.50 support, now with a gap fill to $33, and a measured move to $31.50 on the most recent breakdown. The chart below highlights this trades' profit zone in orange.
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