PBF Energy options flow shows bearish tilt with large put spread targeting $65

The options trading data for PBF Energy Inc (PBF) reveals a bearish sentiment among traders this afternoon. Puts are outpacing calls 2.15-to-1, with 7,513 compared to 3,500 contracts traded. This is the highest volume of put trades since March 10, 2026. A notable trade is a $75/$65 put spread expiring on October 16, 2026, making up 6,600 of the total 11,013 contracts traded.

Traders are using this spread to buy downside protection down to $65, which is approximately 15% below the current price of $76.56. This near-term directional bet has defined risk, rather than being a speculative bet. The fresh open interest on both the $75 and $65 strikes (236 and 390 respectively) indicates these are new positions, not hedges on existing books.

The current market situation is further complicated by technical factors. The implied volatility for the coming three months is at a 70.85% level, which is unusually high for a refining stock. This suggests significant market uncertainty about the stock's future performance. The 90/110 skew is essentially flat at 0.49, indicating the options market is not pricing in catastrophic tail risk, but rather expects a measured, structured move downward.

This bearish tilt in the options flow, combined with other factors like Morgan Stanley's Underweight rating and the company's recent debt issuance, suggests a potential for the stock price to fall.