The trader purchased 40,000 May 6 30.5/27.5 strike put spreads for 60 cents each. Since each put option accounts for 100 shares, this is a $2.5 million bet that Valeant will fall below $29.60 by the May expiration.
"That was actually an adjustment from a previous bearish bet," Optimize Advisors co-founder Mike Khouw said Thursday on CNBC's "Fast Money."
The battleground stock has been under pressure due to a string of bad news. On Thursday, Standard & Poor's lowered Valeant's rating to a "B" from a "B-plus," sending shares down more than 2 percent.
Analysts' estimates show an average price target of $59.27, with an underweight rating, according to FactSet.
Shares were trading slightly higher Friday at $32.46 a share. They were down about 3 percent on the week.