It's been a wild ride for Pandora investors.
Shares of the streaming giant fell more than 4 percent Tuesday and are now down 25 percent from their 52-week highs. Despite the sharp move, the stock has rallied more than 7 percent in the last week amid favorable
On Monday, when options put volume ran more than 13 times its daily average, one trader bet $5.4 million that Pandora shares will plummet into the end of the year. Specifically, that trader purchased 20,000 of the January 20-strike puts for $2.70 each. Since each contract accounts for 100 shares of stock, and buying a put option allows for a trader to sell a stock at a set price at a given time, this trade is profitable if Pandora falls below $17.30, or roughly 13 percent lower, by January expiration.